Market Update: The London Metal Exchange (LME) has seen a positive trend in the prices of most metals, with nickel maintaining a stable pricing structure in both domestic and international markets. Notably, the price of nickel pig iron has also remained unchanged. During the holiday period, former President Trump made headlines by announcing new tariffs on goods imported from Canada, Mexico, and China, adding a layer of uncertainty to global trade dynamics.
On the monetary front, the U.S. Federal Reserve decided to maintain interest rates, aligning with market expectations. This move has resulted in a reduction of short-term expectations for further rate cuts, signaling a stable outlook for the U.S. economy. In the meantime, Indonesia’s Minister of Energy and Mineral Resources reiterated that the government has no intentions to reduce its nickel ore production levels this year, which is a key piece of information for the global nickel market, where supply-demand balance remains a critical factor.
In a related development, on February 3, the Philippine Senate passed a bill that, once enacted into law, will impose a five-year export ban on mineral raw materials. This policy, which closely mirrors Indonesia’s ban on unprocessed mineral exports, could have significant implications for global mining and trade. The bill's eventual enforcement is expected to influence the flow of nickel and other essential mineral resources, further tightening the market.
As the market recovers post-holiday, it is expected that nickel prices will continue to fluctuate around the 125,000 CNY level, with potential volatility driven by geopolitical developments, policy shifts, and supply-demand factors. Traders and investors are advised to stay informed on these key developments that will likely shape the market in the coming months.
Comments