Indonesia’s ban on mineral ore exports will cut nickel supplies while allowing Freeport-McMoRan Copper & Gold Inc. to keep exporting copper concentrates. Nickel and the rupiah rallied, while shares of Nickel Asia Corp., which accounts for about a third of Philippine output, climbed.
Carmakers from Ford Motor Co. to Audi AG and Jaguar Land Rover Plc are using record amounts of aluminum to replace heavier steel, providing relief to producers of the metal confronting excess supplies and depressed prices.
Demand for lead in Japan, the third-biggest economy, is set to climb as the country seeks batteries and generators to help it recover from the destruction caused by its strongest earthquake on record and tsunami.
The proposed additional delivery requirement at warehouses monitored by the London Metal Exchange should help limit the potential for spikes in metal premiums caused by long wait times at some locations, according to Barclays Plc.
The global nickel market may swing into a deficit next year as Indonesia’s ore export ban will constrain production of nickel pig iron, a lower-grade alternative to refined metal, said Macquarie Group Ltd.
Copper supplies relative to demand will fall to a four-year low as operating glitches, labor shortages and declining ore-grade quality cut mine supplies, boosting prospects for a price rebound, Barclays Capital said.