Indonesia planned to impose export duties on nickel pig iron and ferronickel in order to prevent the rapid exhaustion of domestic mineral reserves, which will be implemented as soon as this year, driving international nickel prices to soar.

After the news was released, LME’s three-month nickel futures surged to a ten-year high, reaching US$22,900/ton last week. The increase in a single month was US$1,421.5/ton or 6.85%.

Most market participants were optimistic about this news, believing Indonesia’s measure will further support future stainless steel prices; however, some worried that over-high stainless steel prices may impact downstream purchasing.