RE:RE:RE:Supply constraints incomingThanks Yoldstein. Seeing the word "corruption" solidifies any chance of the US doing any deal with Indonesia is at zero. CNC removes that risk by 100% in the safest jurisdiction in the world.
Some analysts believe the supply issues could start feeding through to global nickel prices. Citi turned from bearish to neutral, predicting that prices could rise to $20,000 per tonne, up from $18,100 at present, on supply constraints.
“Risks to Indonesian nickel supply are growing due to ore grade depletion, regulatory scrutiny, mining quota issuance delays, rising pressure to address ESG concerns [and] the lower price environment,” the US bank’s analysts wrote in a report. They suggested Indonesia might also use its dominance of global nickel production to reduce supply to push up prices.
Olivier Masson, nickel analyst at Fastmarkets, a commodity data provider, said there could quickly be a “chokepoint for refined nickel supply” if production at some mines was stopped until the end of the year and stockpiled material ran low.