Indonesian Nickel Boom Floods Market, Worries Competitors and Environmentalists
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Indonesia has captured over half the global nickel supply through low-cost mining supported by China, leading to a surplus and falling nickel prices globally.
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There are concerns about the environmental impact of Indonesian nickel mining, with calls for sustainability measures and regulations. Some mines already face closure.
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The oversupply of cheap Indonesian nickel has caused a major drop in nickel prices, hurting the profitability of major mining companies and creating uncertainty in the nickel market.
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Competitors are warning that Indonesian dominance could force the closure of mines in other countries as they cannot match Indonesia's low costs.
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Analysts believe Indonesia and China plan to cut nickel production by at least 100,000 metric tons this year to mitigate losses from the decline in nickel prices.