New Wisdom Investment Limited

The price of nickel in the Philippines soared

(Fec 09, 2017)

Due to the implementation of environmental protection measures in Philippines, and nickel prices rose after the consolidation of domestic producers, up more than other industrial metals.

LONDON (Dow Jones) - Three-month nickel futures on the London Metal Exchange rose $ 250 a tonne, after Manila ordered a permanent shutdown of nickel ore, which accounts for about 8 percent of global nickel supply, according to the Financial Times website on Feb. 2. Ton of 10,500 US dollars. Nickel is one of the raw materials for the production of stainless steel.

Nickel prices are under pressure after Indonesia, another major supplier of nickel, announced a possible resumption of nickel exports in January. Analysts said the news from the Philippines will offset Indonesia's increased supply.

"We believe that more than 5% of the supply side is sufficient to change the short-term price, so there is a significant impact on potential events accounting for 8% of global nickel supply," said Tom Price, an analyst at Morgan Stanley.

The decision to close the nickel mine was a result of the mining industry review conducted by Philippine President Duttle, after taking office in June last year. The review was undertaken by the Minister of Environment and Natural Resources Sheena Lopez, who is a severe critic of the mining industry.

The ministry said it would shut down 23 mines, mostly nickel, and halted production at five mines, including the country's largest gold mine.

"I inspected the mines and made judgments based on my own observations," said firm environmentalist Lopez on television.

The Philippines is one of the world's largest suppliers of raw nickel ore and a major supplier to China. Chinese factories use it to produce nickel-containing pig iron. Specific mining review reports have not yet been released.