Facing challenges, how would nickel companies fare in the future?
JAKARTA – Slow nickel demand from China, the biggest global nickel importer, poses certain challenge for exporters like Indonesia.
However, this obstacle is believed to be temporary, according to the research of PT Ina Sekuritas Indonesia. It is said that the long-term potential still carries positive outlook for the industry, especially with several initiatives for downstreaming in Indonesia.
Nickel companies like PT Trimegah Bangun Persada Tbk (NCKL), or widely known as Harita Nickel, added Ina Sekuritas, even shows significant shift in number of sales and cashflow.
“The company has an advantage in low-cost production, thus allowing solid margin of USD 2,500 to 3,000 per ton of nickel (TNi),” said Ina Sekuritas.
In 2024, Harita Nickel joined hands with Lygend Resources from China to pioneer High Pressure Acid Leach (HPAL) technology in nickel downstreaming process in Indonesia. The collaboration, manifested through the establishment of joint venture, is said to solidify the prospect of Harita’s business.
Meanwhile, the estimated number of nickel production in Indonesia in 2025 is set to 2-2.1 million TNi. This projection is in line with the trend of electric vehicles, which will further promote nickel commodities’ prospects in the long run.
Ina Sekuritas believes that nickel issuers, like Harita, PT Aneka Tambang Tbk (ANTM), and PT Vale Indonesia Tbk (INCO), are occupying strategic positions in order to book significant growth.
“Further driven by increased sales, higher average selling price, and advanced expansion to electric vehicle supply chain,” explained Ina Sekuritas in its report.
The shares also secured BUY recommendation from Ina Sekuritas, setting price projection of IDR 1,950 for ANTM, IDR 4,150 for INCO, and IDR 1,120 for NCKL. (KR/ZH)