INCO – Pressures from lower nickel prices

INCO – Pressures from lower nickel prices Vale Indonesia (INCO) is completing its divestment process to a state-owned mining company, MIND ID which is expected to be completed in 2024 and faces a decline in nickel prices in the global market. Oversupply of nickel, especially grade I nickel, since early 4Q23 triggered a price drop to below USD17,000 per ton. Most of the nickel supply is produced by China, which Huayou spearheaded in July 2023. Therefore, INCO's nickel ASP is expected to reach USD13,260 per ton in 2024. The price is predicted to decline as nickel production volumes are likely to remain at high levels. INCO's production is expected to remain stable after the Furnace-4 project resumes operations and further maintenance on the Furnace-2 project in 1Q23. (Source: Kontan)