Indonesia's Nickel Reference Price Slightly Decreases by 0.72% in July 2024

The Indonesian Ministry of Energy and Mineral Resources (ESDM) set the Indonesian nickel reference price at US$18,823.86 per dry metric tonne (dmt) in July 2024.

This figure represents a slight 0.72% decrease from June 2024, which stood at US$18,962.11 per dmt.

The July 2024 reference price is approximately 15% higher than the year-to-date (ytd) price of US$16,368.86 per dmt in January 2024.

This reference price was established through Indonesian Minister of Energy and Mineral Resources Decree (Kepmen ESDM) Number 166.K/MB.03/MEM.B/2024 concerning the Reference Price for Metal Minerals and Coal for July 2024, issued on July 19, 2024.

Potential Pressure on Nickel Prices

According to *Katadata*, the Indonesian Nickel Mining Association (APNI) stated that global nickel prices are deteriorating due to a statement made by US President Donald Trump earlier this week, Monday (July 22).

Trump pledged to revoke mandatory electric vehicle regulations if re-elected as US President in the upcoming November elections. He made this statement while accepting the Republican Party's presidential nomination last week, Thursday (July 18).

"He stated that he would support the national automotive industry because it cannot be shut down. This will certainly impact global nickel prices again," said APNI Secretary General Meidy Katrin Lengkey at the Ministry of Finance office on Monday (July 22).

Based on data from Trading Economics, global nickel prices entered a downward trend after July 8, 2024, around US$17,400 per ton. In other words, nickel prices have fallen by US$1,150 per ton or 6.6% in the last two weeks.

Meidy admitted that she cannot predict nickel price movements if Trump is elected. Furthermore, Meidy stated that nickel is a commodity that can experience price surges, as seen in 2022.

"We can look for other markets, such as countries in Europe and Asia. Hopefully, if Trump is re-elected as US President, it will not have a severe impact on national mining," she said.

(See also: Indonesian Nickel Reference Price Increased by 8.52% in June 2024)