Industry sees stronger demand for nickel in 2020
Despite the decline in world prices, the value of the country’s metallic production in the first nine months of the year rose by 6.5 percent to P99.58 billion from P93.48 billion a year ago.
The Mines and Geosciences Bureau (MGB) said they were expecting sustained growth next year given Indonesia’s ban on nickel ore export.
The robust performance of mixed nickel-cobalt sulfide (MNCS) drove the positive industry-wide results, with yield of P47.36 billion during the period or 48 percent of the total value registered by the sector.
This despite the 1.24-percent slip in the average nickel price and the continuous nonproduction of a number of nickel mines in Zambales, Dinagat Island and Agusan del Norte.
Gold retained the second spot with P39.60 billion in revenue, while copper contributed 14 percent or P14.40 billion. The remaining 1 percent was accounted for by silver and chromite.
Except for the precious yellow metal, prices of nickel, copper and silver all went down during the period. The nine-month average of copper and nickel declined by 9.45 percent and 1.31 percent, respectively.
However, things began to look up for nickel in the third quarter when nickel prices started to go up.
MGB said the nickel ore export ban in Indonesia, which was expected to take effect in January next year, was seen boosting prices.
The new policy would naturally increase the demand for Philippine nickel ore, given that the country is the second largest nickel-producing country in the world right after Indonesia.
Both countries rely heavily on China, since it is the world’s largest consumer of nickel, accounting for more than half of global consumption.
The Philippines alone exports 90 percent of its nickel ore to the Asian economic powerhouse. INQ
