Nickel Producers Hammered in Indonesia as Metal Price Slumps 40%
- Tsingshan Bintangdelapan pushes ahead with capacity expansion
- Relief may be on the horizon as Morgan Stanley sees price rise
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Almost two years after Indonesia, the largest producer of mined nickel, banned ore exports to nurture its metals industry, fledgling smelters are being pummeled by a plunge of more than 40 percent in prices.
The chief executive officer of one of the biggest producers, a Chinese-Indonesian venture called Tsingshan Bintangdelapan Group, says with output costs at $10,000 to $11,000 a metric ton, he’s making a $2,000 loss on every ton he ships. While CEO Alexander Barus thinks prices will recover, he says plans for new smelters will be put on hold if rates stay where they are now.