Recently, Macquarie Group released a report that attracted a lot of attention in the market, which pointed out that the global nickel market could face an unexpectedly sharp shortage if Indonesia's nickel production continues to be constrained by slow mining license approvals. The news is significant for the global metals market, especially with LME nickel exceeding 10% and nickel becoming one of the top six performing metals so far this year.
Macquarie Group analysts pointed out that although their base case shows that there is a surplus of about 40,000 tonnes of nickel, if Indonesia's permit approval process continues to be slow and Indonesia's annual production growth is less than 13%, then this could be at greater risk. Behind this change, it reflects the market's concern about the nickel tension in Indonesia.
Since the beginning of this year, Indonesia has postponed the issuance of mining quotas or licenses for nickel mines, which has led producers or smelters to limit nickel production, thus exacerbating market fears of tightness. It is worth mentioning that Indonesia is one of the world's largest nickel exporters, and its production has an important influence on the global nickel market.
Affected by the tension, the nickel metal has been affected by the **all the way**. Moreover, Macquarie Group analysts also pointed out that the higher-than-expected increase in nickel consumption in China means that the inventory accumulated outside of Indonesia last year may be lower than previously estimated, bringing the nickel metal market closer to equilibrium.
In this context, in the context of sluggish global commodity consumption demand, Indonesia, a major nickel exporter, has postponed the issuance of nickel licenses, resulting in nickel metal *** Most nickel mines and nickel mining projects in the world are facing difficulties, and some miners are even considering closing their factories.
However, as nickel continues, this trend will bring great relief to miners and metal smelters elsewhere. Although Indonesia has pledged to approve nickel licenses one after another, the market continues to focus on the tense situation.
In this context, investors and companies need to pay close attention to the dynamic changes in the nickel market and formulate corresponding investment and business strategies. As the global economic recovery progresses, the performance of the nickel market will receive more attention, and investors should remain cautiously optimistic and respond flexibly to market changes.
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