Nickel prices drop as Indonesian exports ban approaches

Nickel prices fell today as the Indonesian government's decision to ban the exports of the metal in order to boost the local steel industry.

The Indonesian government's decision to fully ban nickel ore exports starting from next January is aimed at building the countries reserve of nickel in the next two years.

Indonesia also aims to reduce the export of its natural resources in general, alongside building smelters for metals such as nickel and copper.

Jakarta will also encourage local producers and miners to expand thier utilization of industrial metal ores such as nickel in processing products and to spurr local industries.

Nickel is widely used in stainless steel and other industries such as electronics, batteries, chemicals and multiple other industries.

Nickel prices fell by 1.6% to $1,3197.5 per tonne as of 14:40 GMT, and hit an intraday high of $1,3416.5.