China will accelerate investment in alternative nickel supply sources and strengthen its role across the metal\u2019s wider supply chain, analysts said, after the United States finalised a deal with Indonesia on Thursday that will give America unrestricted access to the country\u2019s industrial commodities.<\/p>\n
While the US Supreme Court\u2019s tariff ruling last week could add some uncertainty<\/a> to US-Indonesia trade, the agreement<\/a> has the potential to reshape the global supply chain for nickel \u2013 a metal used to make stainless steel and some electric vehicle batteries.<\/p>\n \u201c[The US-Indonesia deal] is quite important and China will not like it,\u201d said Alicia Garcia-Herrero, chief economist for the Asia-Pacific region at Natixis. \u201cChina does have leverage through its big stake in Indonesian nickel mines and could try to retaliate by slowing tech transfers or pulling back investment.\u201d<\/p>\n Indonesia has emerged as a decisive player in the nickel market in recent years, accounting for more than 60 per cent of global mine supply for the metal, according to a Goldman Sachs article published last week.<\/p>\n The recent rally in global nickel prices \u2013 which saw the price of the base metal jump more than 30 per cent between mid-December and January \u2013 was largely driven by Indonesia\u2019s decision to restrict how much ore could be mined, Goldman Sachs said.<\/p>\n \u201cNow Indonesia\u2019s supply decisions are the lever the market is watching,\u201d said Lavinia Forcellese, a commodities analyst with Goldman Sachs Research. \u201cAnd relatively small changes in policy or approvals can have an outsize impact on global balances and prices.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"China will accelerate investment in alternative nickel supply sources and strengthen its role across the metal\u2019s wider supply…\n","protected":false},"author":3,"featured_media":612245,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[12],"tags":[216549,13214,4740,9710,64,74,79,862,9996,262646,216546,262647,24958,262645,123053,67,132,68,73],"class_list":["post-612244","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-alicia-garcia-herrero","tag-asia-pacific","tag-australia","tag-beijing","tag-business","tag-china","tag-economy","tag-goldman-sachs","tag-indonesia","tag-jingtian-gongcheng","tag-natixis","tag-pacific-forum","tag-philippines","tag-rezki-syahrir","tag-southeast-asian","tag-united-states","tag-unitedstates","tag-us","tag-us-supreme-court"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/116124408020836025","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/612244","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=612244"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/612244\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/612245"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=612244"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=612244"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=612244"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}