The price of nickel raw materials may rise, and the price of faucet may also higher than before.
Nickel is one of the raw materials for the plating of products such as faucets and showers. 300 series stainless steel with nickel as the main raw material is also widely used in the sanitary industry. The rise in nickel prices is expected to have a certain impact on production companies.
Indonesia accelerates export ban, nickel prices skyrocket
Last week, Indonesian officials finally confirmed that they would impose a ban on nickel ore exports on January 1, 2020, two years ahead of the previously announced time. According to the analysis, if the ban is implemented in advance, Indonesia’s existing nickel-iron production capacity will be completely incapable of digesting Indonesia’s nickel ore production, which is expected to cause a serious shortage of global nickel resources before 2022. There is already a narrow gap in the current global nickel market. The price of nickel has risen sharply.
As early as July this year, rumors about the mine ban on Indonesia have been rampant, driving the price of nickel to rise sharply. Among them, the main contract of Shanghai nickel rose by 11.09% and 16.13% respectively in July and August, and the increase of LME nickel in July and August was 14.70% and 23.57% respectively.
According to the Shanghai Futures Exchange, China is the world’s largest consumer of nickel, with consumption of 1.14 million tons in 2017, accounting for 53.4% of total global consumption. Due to the relatively scarce nickel resources in China and the high dependence of raw materials on foreign materials, a large amount of imported nickel ore is required.
According to the data of the General Administration of Customs, the total import of China’s nickel ore and concentrates in 2018 is 46,992,300 tons, of which Indonesia’s imports are 1,501,500 tons, and the Philippines’ imports are 3,000,82 tons, accounting for 31.96% and 63.86% respectively. If Indonesia implements mine ban, China will be seriously affected, and manufacturers will face further pressure from rising costs.