Indonesia's Nickel Price Benchmark Continues to Decline into Early 2024

The Indonesian Ministry of Energy and Mineral Resources (ESDM) set the benchmark price of Indonesian nickel at US$16,368.86 per dry metric tonne (dmt) in January 2024.

This benchmark is down approximately 7.27% from the previous month's US$17,653.33 per dmt in December 2023.

The downward trend in nickel prices has continued since the beginning of last year.

Since January 2023, the nickel benchmark price has only increased three times until the end of 2023. Specifically, in February 2023 it was set at US$28,444 per dmt, in June 2023 at US$23,317 per dmt, and in September at US$20,827 per dmt. Outside of these three months, nickel prices were predominantly declining.

The Ministry of ESDM stated that this nickel benchmark price is a cash seller and settlement price published by the London Metal Exchange (LME).

The nickel benchmark price was set through Indonesian Minister of Energy and Mineral Resources Decree Number 8.K/MB.01/MEM.B/2024 concerning the Benchmark Price of Metal Minerals and the Benchmark Price of Coal for January 2024, on January 15, 2024.

Global Nickel Price Projection Down in 2024

The World Bank projects that global nickel prices will fall further in 2024, continuing the weakening trend seen throughout 2023.

This is recorded in the *Commodity Markets Outlook* report, October 2023 edition.

According to World Bank data, nickel prices did strengthen since the Covid-19 pandemic hit, specifically since 2021.

Then in 2022, the average nickel price reached US$25,833.73 per ton, its highest record in the last five years.

However, in 2023 the average nickel price fell by 16.7% (year-on-year/yoy) to US$21,521.12 per ton.

The World Bank projects that this downward trend will continue, with the average price reaching US$20,000 per ton in 2024.

The World Bank made this projection due to an increase in nickel supply from major producing countries, such as China, Indonesia, and the Philippines.