Indonesia will expedite restrictions on nickel ore exports from January 2022 to the end of 2019, according to an Aug. 30 Reuters report citing Indonesia's Energy and Mineral Resources Minister Ignasius Jonan.
The government also issued new rules outlining penalties for nickel producers that do not build smelters in the country, a key issue for the Indonesia government.
The nickel restrictions came "according to the President's direction," Reuters quoted Jonan as saying, while ministry spokesman Agung Pribadi said further information will be provided next week.
Indonesia is a major nickel producer.
Ahead of the new restrictions, S&P Global Market Intelligence's Commodity Briefing Service raised its 2019 nickel forecast from US$12,538/t to US$13,292/t, based on the London Metal Exchange's three-month nickel contract.
Market Intelligence noted Indonesia's decision could have an impact on prices. It said in a recent report that "if these latest media reports are confirmed, this raises the likelihood that the average nickel price could exceed our expectations for the year."
