World Nikkel supplies are dropped by 35% due to Indonesia

The potential reduction in the production of Nickel of the Indonesian mines can lead to the loss of more than a third of the global market offer, according to the ‘Macquarie Group’ banking group, which poses a major danger that could rise. The Indonesian government is studying significant discounts in the production shares of Nickel Mines from 272 million tonnes in 2024 to 150 million tonnes, according to Bloomberg last month. The proposed reduction will be 40% less, according to the most likely scenario of “Macquari”, resulting in a significant reduction in the production of the metal used in the battery industry. Factors that warn about the rise in nickel prices. The bank is of the opinion that the cuts of this size in the nickel supplies are largely unlikely, but this indicates that production is less than expected for mines in the largest productive country in the world is a bullish threat to prices. The bank wrote in a research note on Wednesday that the market is still expected to see a small surplus of this year. The price of the nickel dropped to a second annual loss in 2024 due to the increase in the production of Indonesia and the poor demand of batteries and stainless steel manufacturers. Traders are monitoring China’s efforts to stimulate its economy this year, as well as the impact of customs duties policy, followed by the new US administration. According to Macquari, the production of Indonesian mines is the most important factor in price movements. It is noteworthy that crude oil supplies in the country, which represent more than half of the global nickel production, were unable to keep up with the demand last year due to the restriction of the government, which led to the import of record quantities of the Philippines.