Norilsk Nickel Soars 6% after Indonesia Bans Nickel
The trigger for the growth of shares was the announcement of an agreement by mining companies in Indonesia to immediately stop the export of this metal, which is necessary in the production of batteries for electric cars. This was reported by Reuters with reference to the words of the head of the investment agency of Indonesia Bahlil Lahadaliya.
Indonesia, one of the largest nickel suppliers in the world, planned to introduce a ban on metal exports, but only first from January 2022, and then moved the deadline to 2020.
According to the estimates of VTB analysts, whose report was reviewed by the media due to the ban on exports from Indonesia, about 215 thousand tons of nickel, or about 10%, will go from the world market. For the first time, Indonesia introduced a ban on nickel exports back in 2014, mitigating it in 2017. Thus, the country is trying to develop domestic metal processing.