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Indonesian Nickel Price Benchmark Plunges in July 2023, Lowest Since Late 2022

Erlina Fury Santika 08/08/2023 15:55 WIB

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The Ministry of Energy and Mineral Resources (ESDM) set the nickel reference price at US$21,376.75 per dry metric ton (dmt) in July 2023. This is the lowest nominal price since September 2022.

Indonesian Nickel Price Reference from the Ministry of Energy and Mineral Resources (September 2022-July 2023)

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Indonesian Nickel Price Reference from the Ministry of Energy and Mineral Resources (September 2022-July 2023)

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The Ministry of Energy and Mineral Resources (ESDM) sets the benchmark price for minerals, including nickel. In July 2023, the nickel price reached US$21,376.75 per dry metric tonne (dmt), or Rp325.39 million per dmt (assuming an exchange rate of Rp15,222 per US$).

This figure is lower than the June 2023 benchmark price of US$23,317 or Rp354.93 million per dmt. In fact, the July 2023 benchmark was the lowest since September 2022.

Between September 2022 and July 2023, the nickel benchmark price surged in February 2023, reaching US$28,444.50 or Rp432.98 million per dmt.

Subsequently, it experienced a significant decline, from US$27,860 (Rp424.08 million) per dmt in March 2023 to US$24,227 (Rp368.78 million) per dmt in April 2023.

The latest benchmark price was set in the Indonesian ESDM Minister's Decree No. 183.K/MB.01/MEM.B/2023 concerning the Benchmark Price for Metal Minerals and Coal for July 2023.

Citing *Katadata*, ESDM Minister Arifin Tasrif emphasized the importance of establishing an Indonesia Nickel Prices Index as an instrument for nickel trading in the domestic market.

Arifin believes this index will serve as a benchmark for domestic nickel sales, dominated by lower-grade nickel, such as nickel pig iron (NPI), ferronickel, and nickel matte, which are raw materials for stainless steel production.

The function of the Indonesia Nickel Prices Index will be similar to the coal benchmark price scheme that regulates the amount of royalty fees for domestic coal businesses.

"So there's a standard, just like coal," Arifin said at the Nusantara I Building of the Indonesian House of Representatives in Jakarta on Wednesday, May 24, 2023.

Arifin is confident that the Indonesia Nickel Prices Index will provide certainty regarding national nickel prices because it is based on domestic calculations.

"Without this index, there will be pressure. Usually, the buyer is king; we shouldn't let there be too many kings," said Arifin.

(See also: Nickel: Downstreaming, Potential, and Increasing Poverty in Mining Regions 2023)

Editor : Erlina Fury Santika

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."