Nickel prices moved lower on Thursday as investors weighed the potential effects of a new Indonesian export policy that centralizes certain commodity shipments under state control.
The benchmark three-month nickel contract on the London Metal Exchange fell 1.4% to $18,665 per metric ton as of 0800 GMT. Traders cited the need to reassess supply conditions after Jakarta disclosed the policy change.
Indonesia’s President Prabowo Subianto announced the new policy on Wednesday. Further clarifications were provided on Thursday by officials from the trade ministry and by the chief executive of Danantara, Indonesia’s sovereign wealth fund. Those later comments offered additional operational detail without changing the core elements of the policy.
Under the announced framework, a unit of Danantara will act as the sole exporter for palm oil, coal and ferroalloys beginning on September 1. The policy change covers a set of traded commodities that includes products tied to the country’s mineral and agricultural sectors. Indonesia is the world’s top nickel producer, a status that makes changes in its export arrangements particularly relevant for global nickel markets.
Market reaction on Thursday reflected investors taking time to evaluate how state-managed export channels might influence availability of nickel and related materials. The move consolidates export activity for several commodities under one entity, which market participants will monitor for its effects on flows and pricing.
Contextual note: The information in this report is limited to the details released by Indonesian authorities and the market prices recorded at the time stated. Where officials provided further detail, those comments were incorporated as described by the trade ministry and Danantara’s chief executive.