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Implicit Interpretation of Indonesian Export Bans on LME Nickel Prices: Evidence from the Announcement Effect

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Korea Consumer Agency, Chungbook 27737, Korea
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Public Procurement Service, Daejeon 35208, Korea
*
Author to whom correspondence should be addressed.
Academic Editor: Mogens Steffensen
Received: 25 March 2021 / Revised: 8 May 2021 / Accepted: 10 May 2021 / Published: 11 May 2021
Forecasting of LME (London Metal Exchange) nickel prices remains an interesting topic but lacks consensus. This study aims to fill knowledge gaps by demonstrating the announcement effect of export bans by the Indonesian government. This article focuses on Indonesia because Indonesia produces more than 60% of global nickel ore. We identified the sequence of two episodes in which Indonesian export bans of nickel ore appeared to increase LME nickel prices. The impact of the Indonesian export ban in 2014 is somewhat larger than that of 2019. The shock on the LME nickel market in 2014 was sustained for a while after the ban was implemented. We believe that this is the first export ban that has had unexpected effects within the market. View Full-Text
Keywords: announcement effect; Indonesian export bans; cumulative forecasting error announcement effect; Indonesian export bans; cumulative forecasting error
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MDPI and ACS Style

Lim, B.; Kim, H.S.; Park, J. Implicit Interpretation of Indonesian Export Bans on LME Nickel Prices: Evidence from the Announcement Effect. Risks 2021, 9, 93. https://0-doi-org.brum.beds.ac.uk/10.3390/risks9050093

AMA Style

Lim B, Kim HS, Park J. Implicit Interpretation of Indonesian Export Bans on LME Nickel Prices: Evidence from the Announcement Effect. Risks. 2021; 9(5):93. https://0-doi-org.brum.beds.ac.uk/10.3390/risks9050093

Chicago/Turabian Style

Lim, Byungkwon, Hyeon S. Kim, and Jaehwan Park. 2021. "Implicit Interpretation of Indonesian Export Bans on LME Nickel Prices: Evidence from the Announcement Effect" Risks 9, no. 5: 93. https://0-doi-org.brum.beds.ac.uk/10.3390/risks9050093

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