LME brand approval cements Indonesian nickel ascendancy – by Andy Home (Reuters – May 30, 2024)


LONDON, May 30 (Reuters) – The London Metal Exchange (LME) has approved the listing of the first ever Indonesian brand of refined nickel. “DX-zwdx” isn’t the most memorable of historical markers but the new brand’s inclusion on the LME good delivery list represents a watershed moment for the global industry.

Five years ago Indonesia produced just 600,000 metric tons of nickel and shipped most of it as unprocessed ore to China, where it was alloyed into stainless steel. Last year the country mined 2.03 million tons of contained metal, accounting for over half the world’s production.

It now exports a spectrum of nickel products, including refined metal of a purity acceptable for LME delivery.For Indonesia it’s a vindication of its policy of forcing miners to move downstream by banning ore exports from 2020.

For the LME it’s a welcome liquidity booster as it looks to rebuild its nickel contract after the crisis of 2022.

For the rest of this column: https://www.reuters.com/markets/commodities/lme-brand-approval-cements-indonesian-nickel-ascendancy-2024-05-29/