Challenges loom for global stainless steel market due to Indonesian nickel reserves depletion
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Update time : 2023-11-03 18:54:29
In recent years, the global stainless steel materials market has increasingly faced serious challenges due to the potential depletion of high-grade nickel ore reserves in Indonesia within approximately six years, which could lead to a shortage of stainless steel materials.
The secretary-general of the Indonesia Nickel Miners Association stated that the government needs comprehensive control over the elasticity of nickel reserves to sustain downstream strategies and increase added value.
With the prohibition of unprocessed nickel ore exports and global investments flowing into Indonesia, nickel ore has become a significant part of the country's economy.
Indonesia is considering processing low-grade nickel ore domestically to address the issue. Unexplored areas might yield new reserves but might also lead to potential new environmental and resource problems.
Although Indonesia is expected to produce over half of the world's nickel in 2023, supply issues persist.
If high-grade nickel ore in Indonesia becomes depleted, global stainless steel production will face challenges, resulting in price hikes and supply shortages.
