Indonesia's Nickel Reference Price Soared 8.75% in April 2024

The Indonesian Ministry of Energy and Mineral Resources (ESDM) set the benchmark price for nickel at US$17,424.52 per dry metric tonne (dmt) in April 2024.

This benchmark represents an increase of approximately 8.75% compared to March 2024, which stood at US$16,021.67 per dmt.

The April 2024 benchmark price is the highest since the beginning of the year. Since January 2024, the Indonesian nickel benchmark price has been in the range of US$16,000.

This benchmark price was established through Indonesian Minister of Energy and Mineral Resources Decree Number 88.K/MB.01/MEM.B/2024 concerning the Benchmark Price for Metal Minerals and Coal for April 2024, on April 22, 2024.

(Also read: [This is the Planned Production Capacity of Indonesian Mineral Commodities in 2024](https://databoks.katadata.co.id/datapublish/2024/04/03/ini-rencana-kapasitas-produksi-komoditas-mineral-indonesia-pada-2024))

*Katadata* reported that nickel prices reached their highest level in seven months at the start of trading on Monday, April 22, 2024. This is due to market concerns about China's plans to increase purchases to boost its reserves. This plan has fueled market concerns about a tightening of supply.

The three-month nickel price on the London Metal Exchange (LME) at 02.00 GMT rose 0.8% to US$19,740 per tonne. This price is up 8.6% compared to the previous week.

The June delivery contract jumped 6% to US$20,389.68 per tonne or 147,660 yuan, reaching its highest level since October 2023. For information, the June delivery contract is the most actively traded on the Shanghai Futures Exchange (SHFE).

"The surge in nickel prices is driven by China's stockpiling plans. The National Food and Strategic Reserves Administration plans to buy nickel pig iron, a key raw material for stainless steel," said an industry source as quoted by Reuters.

The increase in nickel prices is also driven by the United States and the United Kingdom's ban on metal imports from Russia. Russia is one of the main suppliers of nickel and aluminum, so this also raises concerns about global supply disruptions.

(Read *Katadata*: [Ending the Downward Trend, April 2024 Benchmark Nickel Price Rises 8.7%](https://katadata.co.id/berita/energi/662745533439f/akhiri-tren-penurunan-harga-nikel-acuan-april-2024-naik-8-7))