Chinese-controlled company, PT Indonesia Morowali Industrial Park (IMIP), which is located on Indonesia’s Sulawesi Island and houses major China-based steelmakers and battery firms, has sealed off its premises as a preventive measure against the deadly coronavirus, according to media reports. Nickel production from the Morowali Industrial Park will remain “as per normal”, according to IMIP.
IMIP has barred more than 43,000 employees from entering or leaving the industrial complex since Jan 25. Many of its employees are from Mainland China who had returned to work after Lunar New Year. The company has also temporarily stopped hiring workers from China and none of its employees have tested positive to coronavirus, said IMIP’s spokesperson quoted by France24.
LME nickel has dipped significantly post the coronavirus outbreak as market participants expect lower demand for the commodity as China’s economy slows down further. LME nickel cash contract dropped by 9pc or $1,200/mt to $12,750/mt on Monday from $13,950/mt (Jan 15) in mid-January, when the news of the virus outbreak first hit the markets.