October 2024 Metal Mineral Reference Prices: Impact of Rising Nickel, Copper, and Gold Prices on Indonesia's Industry

Sun, 27 Oct 2024 09:00 | News | Editorial INTI

Jakarta, INTI – Indonesia's Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, has officially set October 2024’s Metal Mineral Reference Prices (HMA) under Decree No. 277.K/MB.01/MEM.B/2024. This includes strategic metal commodities like nickel, copper, gold, and cobalt, which play a vital role in the national industry, especially in supporting electric vehicle and renewable energy technology development.

Nickel Price Reaches USD 16,175.23/dmt: A Boost for the Battery Industry

The benchmark price for nickel set at USD 16,175.23/dmt reflects rising global demand, primarily from the automotive sector focused on electric vehicle batteries. Agus Cahyono, Head of Communications at the Ministry of ESDM, said that the increased price is expected to stimulate the development of smelters and battery industry downstreaming in Indonesia.

As one of the largest nickel producers globally, Indonesia stands to maximize its economic benefits from this price rise. The higher HMA for nickel also incentivizes investors to develop refining technologies and battery production domestically, aligning with the government’s vision to increase added value and create new jobs in the sector.

Stable Copper and Gold Prices Amidst Global Market Volatility

The October benchmark prices for copper and gold are set at USD 9,093.91/dmt and USD 2,522.18 per troy ounce, respectively. These prices reflect stability amid global market volatility. Copper, essential in electronics and electrical infrastructure, continues to experience strong demand. The manufacturing industry, especially in electronics, telecommunications, and renewable energy, is directly impacted by these benchmark prices.

Meanwhile, demand for gold remains high in the investment and jewelry sectors, maintaining stability. The gold price is expected to support the growth of the jewelry and investment industries and increase Indonesia’s foreign exchange reserves through gold exports.

Cobalt and Aluminum: Key Commodities for Energy Transition

Benchmark prices for cobalt, set at USD 24,105.00/dmt, and aluminum, at USD 2,430.32/dmt, also draw attention. Both commodities are essential for battery manufacturing and automotive components. With competitive prices, mining companies are encouraged to engage in exploration and production to support the global energy transition.

HMA for Zinc, Lead, and Silver

The benchmark price for zinc is set at USD 2,796.11/dmt, lead at USD 2,008.00/dmt, and silver (a by-product) at USD 29.39 per troy ounce. These prices show moderate stability and increases, aligning with market demand. Zinc and lead are heavily used in construction and automotive industries, while silver remains in demand in jewelry and electronics.

Benefits of HMA for Domestic Industry and Exports

The HMA is expected to provide clear price guidelines for the domestic mining industry, covering both domestic and export markets. The government-set benchmark price gives the industry greater stability in transactions, encouraging production growth and downstream industry development.

The Ministry of Energy and Mineral Resources’ October 2024 Metal Mineral Reference Prices are expected to benefit Indonesia’s domestic mining industry, particularly for strategic commodities such as nickel, copper, gold, and cobalt. With competitive and stable prices, Indonesia aims to attract more investment in mining and downstream industries while supporting the government’s vision for electric vehicle and renewable energy technology development.