Antam sees lower nickel price<\/p>\n
Rendi A. Witular, The Jakarta Post\/Jakarta<\/p>\n
State-owned mining firm PT Aneka Tambang (Antam) forecasts a
\nlower nickel price next year as metal brokers are expected to
\nreduce speculation activities on the commodity.<\/p>\n
Antam president director Dedi Aditya Sumanagara said the
\naverage price for nickel contained in ferronickel was likely to
\nstand at between US$4.50 and $5 per pound next year, down from
\nthe current average of $6.19 per pound.<\/p>\n
\"I think the most feasible and acceptable price for both
\nproducers and buyers is between $4.50 and $5 per pound. The
\ncurrent high price of nickel is mostly driven by speculation,\"
\nDedi told reporters and investors recently.<\/p>\n
The price of nickel has skyrocketed to a record high this
\nyear, spurred by strong global demand, particularly from China,
\namid a limited supply following disruptions in the operations of
\na number of giant nickel producers.<\/p>\n
Nickel is mostly used for stainless steel and for some
\nautomotive components.<\/p>\n
Consumption of stainless steel in China is estimated to grow
\nby around 40 percent next year to five million metric tons,
\nmeaning that the country may need some 200,000 tons of nickel to
\nfulfill its stainless-steel demand.<\/p>\n
Antam operation director Alwin Syah Loebis explained that
\nalthough nickel demand from China would remain strong next year,
\nnickel prices were estimated to clearly reflect the real supply
\nand demand as speculation was likely to abate.<\/p>\n
\"We hope there will be no disruption in nickel production next
\nyear to avoid such issues being used to speculate on nickel
\nprices. There are unlikely to be any significant issues next year
\nto cause the price to soar,\" said Alwin.<\/p>\n
Alwin said that China was not Antam's traditional market, and
\nthat the company would continue to focus on meeting demand from
\nJapan, South Korea and Europe.<\/p>\n
Publicly listed Antam plans to focus on fulfilling nickel
\ndemand from China in 2006.<\/p>\n
Sales of Antam commodities -- nickel, gold and silver -- from
\nJanuary until September surged to Rp 1.94 trillion from Rp 1.42
\ntrillion, with operating profit also rising to Rp 701.3 billion
\nfrom Rp 287.4 billion.<\/p>\n
Its net profit more than tripled to Rp 520.7 billion ($57.8
\nmillion) from Rp 144.5 billion in the same period last year.<\/p>\n
The company sold 5,394 tons of nickel contained in ferronickel
\nand 2,754 kilograms of gold. Ferronickel is raw material from
\nwhich nickel is derived.<\/p>\n
Antam is 65 percent owned by the government and 35 percent by
\nthe investing public.<\/p>\n
Graphic
\nAntam average nickel prices (in US$ per pound)<\/p>\n
2001 2.63
\n2002 3.05
\n2003 4.06
\n2004 6.19*<\/p>\n
* In the first nine months
\nSource: Antam<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/antam-sees-lower-nickel-price-1447893297",
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