APNI Announces Indonesia Metals Exchange for 2025

Introduction

The Indonesian Nickel Miners Association (APNI) has announced plans to launch the Indonesia Metals Exchange (IME) in 2025. This move aims to make Indonesia, which holds the largest known nickel reserves and is the world’s leading nickel exporter, less dependent on foreign commodity exchanges that currently set benchmark prices.

Impact on Nickel Prices

Nickel prices in Asia surged by over 5.5% following the announcement. The Shanghai Futures Exchange (SHFE) saw its most active contract (ni2408) rise by more than 5.6%, while the London Metal Exchange (LME) experienced a 2.4% increase shortly after trading began.

Effect on Stainless Steel Prices

The expected decline in Asian stainless steel prices did not occur. Instead, prices were adjusted upward, with a major stainless steel producer already increasing its prices. This trend aligns with past observations where nickel prices rose following the release of new alloy surcharges.