Philippines Looks To Replicate Indonesia’s Nickel Market Success | OilPrice.com

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The Philippines is looking to replicate Indonesia’s nickel market success with a potential export tax or outright ban on exports.

returned sideways in the short term after finding a peak in January. Since the price has not bounced high enough to confirm an uptrend, downside risk may increase. Meanwhile, volume levels appear at least partially responsible for current stainless and nickel price action. Overall buyer volume has continued to decline since January. This comes after a much more substantial loss of liquidity in 2022.

to Environment and Natural Resources Secretary Yulo Loyzaga, “we want to move out from being just part of the supply chain. We want to be part of the value chain.” In terms of market impact, a tax from the Philippines would add support to the nickel price, albeit to a lesser extent. It would also tighten nickel supply for the foreseeable future, thus increasing production costs for downstream industries. However, it is likely more of a medium- or long-term threat.

Other critics have noted the flawed comparison between Indonesia and the Philippines. While Indonesia accounts for 48% of global supply, the Philippines accounts for just 11%. This gives Indonesia considerably more leverage in the market.to the U.S. Geological Survey , the Philippines was the second largest producer in 2022. Still, its output sat markedly beneath that of Indonesia.

 

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