Heavy: Indonesia will set up state-owned enterprises to recover nickel export rights, and simultaneously adjust tax rules to raise nickel ore pricing standards.-Zhejiang Benji Stainless Steel Co., Ltd

First, the raw material report:
1. Nickel: On May 22nd, the closing price of nickel in London was $18,913, up by $186, or 0.99%; The latest price of Shanghai Nickel 2606 is 144,640 yuan, up by 600 yuan, or 0.42%; Shanghai high carbon ferrochromium FeCr55C1000(50 basis) 8350 yuan /50 basis tons. The reference price of domestic ferromolybdenum FeMo60 is 317,200 yuan/ton, down 3,500 yuan.
2. The latest price of stainless steel 2607 is 14,845 yuan, up by 50 yuan, or 0.34%; The position was 121,404 lots and the turnover was 119,406 lots.
3. Price quotation of waste stainless steel in Dai Nan (RMB/ton):
1, 201 new materials 5250-5650, 304 new materials 9750-10000, 304 industry 9700-10000, 304 shavings 8850-9100.
2, 316 furnace 18300-18800, 316 shavings 16700-17000
3, 201 leftover 5600-5800, 201 old tube 4900-5100, 202 big furnace 5800-6100.
4, 430 No film 4600-4800, 431 Return charge 3600-3800
II. 【 Castle Peak Round Steel 65-130 】
S30400 material is 14,400 yuan/ton, 316L material is 27,650 (this price is subject to a small order), TP321 material is 17,200 yuan/ton, 321 material is 16,000 yuan/ton, 2205 material is 29,600 yuan/ton, and 2507 material is 35,700 yuan/ton.
III. [Reference Price of Zhejiang Benji Pipe]
Stainless steel seamless pipe 30408 material, specification 25*2*6000 cold-drawn pipe pickling weighing delivery-24.7 yuan/kg;
Stainless steel seamless pipe S31603 material, specification 25*2*6000 cold-drawn pipe pickling weighing delivery-39.9 yuan/kg;
Stainless steel seamless pipe S32168 material, specification 25*2*6000 cold-drawn pipe pickling weighing delivery-29.2 yuan/kg;
Stainless steel welded pipe 30408 material, specification 219-813*4-6 pickling and weighing delivery-19.8 yuan/kg;
Stainless steel welded pipe S31603 material, specification 219-813*4-6 pickling and weighing delivery-35.8 yuan/kg;
Stainless steel welded pipe 32168 material, specification 219-813*4-6 pickling and weighing delivery-23.8 yuan /kg.
Fourth, market analysis
On May 20th, the Financial Times reported that Indonesian President Prabowo Subianto announced in Parliament on Wednesday that the government would set up a state-owned enterprise as the sole exporter of various commodities in Indonesia. The new regulations will be implemented in stages from June 1.
After the news was announced, the benchmark palm oil price of Malaysia Exchange rose by nearly 2%, and the nickel price also rose due to supply concerns.
According to the report, prabowo did not specify which ferroalloys were involved, but analysts pointed out that the relevant scope may cover some nickel products-nickel is a key raw material for the manufacture of stainless steel and electric vehicle batteries.
This export control is not the first time Indonesia has adopted radical resource control measures. In 2020, Jakarta suddenly banned the export of raw nickel ore and forced foreign-funded enterprises to invest in nickel processing facilities in Indonesia, which eventually made Indonesia a leading force in the global nickel market.
The establishment of the new institution also has its financial logic. According to the report, with the continuous tension in the Middle East pushing up global oil prices, Indonesias macroeconomic and financial risks are rising, and the government hopes to expand national income by controlling the export of bulk commodities.
As the basic raw material of power battery and stainless steel industry, the supply pattern of nickel is also highly concentrated. Indonesia holds more than 60% of the worlds nickel ore supply, and desperately grasps the source pricing and supply rhythm of the global nickel industry. Recently, Indonesia has drastically cut the quota of nickel mine production, and the annual total has been directly reduced from 379 million tons to about 260 million tons, a drop of over 30%. It has also changed the three-year examination and approval to annual examination and approval, and the export control has been directly expanded.
Indonesia has also adjusted the taxation rules at the same time, raised the valuation standard of nickel ore, and increased the associated metals separately. Fifteen kinds of local ferroalloy exports are directly nationalized, and local state-owned enterprises have full authority to connect with overseas channels. The management and control measures of layer upon layer have continuously raised the import cost of domestic nickel raw materials and squeezed the profit space of downstream industries.
After Indonesia drastically reduced the quota of nickel ore, a supply gap of tens of millions of tons was formed every year, which directly impacted downstream smelting enterprises. At present, the import channel of nickel ore in China is too single, mainly relying on Indonesia and the Philippines, and the supply structure is extremely unstable.
According to Mysteels research, however, the peak demand season of stainless steel market in China is generally in March-May and September-October. Under the background of increasing stainless steel production capacity, the off-season may affect the scheduling of stainless steel to some extent. At the moment when the shortage of sulfur supply has not been completely solved, it may be difficult to change the overall tight supply of nickel and iron in China and Indonesia this year without considering the conversion of nickel and iron projects in Indonesia.

Zhejiang Benji Stainless Steel Co., Ltd.,