Implicit Interpretation of Indonesian Export Bans on LME Nickel Prices: Evidence from the Announcement Effect
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 th...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
MDPI AG
2021-05-01
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| Series: | Risks |
| Subjects: | |
| Online Access: | https://www.mdpi.com/2227-9091/9/5/93 |
| _version_ | 1797534535618920448 |
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| author | Byungkwon Lim Hyeon Sook Kim Jaehwan Park |
| author_facet | Byungkwon Lim Hyeon Sook Kim Jaehwan Park |
| author_sort | Byungkwon Lim |
| collection | DOAJ |
| description | 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. |
| first_indexed | 2024-03-10T11:30:52Z |
| format | Article |
| id | doaj.art-a2fe31eb4d6b48b3876949840c1b6a29 |
| institution | Directory Open Access Journal |
| issn | 2227-9091 |
| language | English |
| last_indexed | 2024-03-10T11:30:52Z |
| publishDate | 2021-05-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Risks |
| spelling | doaj.art-a2fe31eb4d6b48b3876949840c1b6a292023-11-21T19:15:45ZengMDPI AGRisks2227-90912021-05-01959310.3390/risks9050093Implicit Interpretation of Indonesian Export Bans on LME Nickel Prices: Evidence from the Announcement EffectByungkwon Lim0Hyeon Sook Kim1Jaehwan Park2Korea Consumer Agency, Chungbook 27737, KoreaPublic Procurement Service, Daejeon 35208, KoreaPublic Procurement Service, Daejeon 35208, KoreaForecasting 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.https://www.mdpi.com/2227-9091/9/5/93announcement effectIndonesian export banscumulative forecasting error |
| spellingShingle | Byungkwon Lim Hyeon Sook Kim Jaehwan Park Implicit Interpretation of Indonesian Export Bans on LME Nickel Prices: Evidence from the Announcement Effect Risks announcement effect Indonesian export bans cumulative forecasting error |
| title | Implicit Interpretation of Indonesian Export Bans on LME Nickel Prices: Evidence from the Announcement Effect |
| title_full | Implicit Interpretation of Indonesian Export Bans on LME Nickel Prices: Evidence from the Announcement Effect |
| title_fullStr | Implicit Interpretation of Indonesian Export Bans on LME Nickel Prices: Evidence from the Announcement Effect |
| title_full_unstemmed | Implicit Interpretation of Indonesian Export Bans on LME Nickel Prices: Evidence from the Announcement Effect |
| title_short | Implicit Interpretation of Indonesian Export Bans on LME Nickel Prices: Evidence from the Announcement Effect |
| title_sort | implicit interpretation of indonesian export bans on lme nickel prices evidence from the announcement effect |
| topic | announcement effect Indonesian export bans cumulative forecasting error |
| url | https://www.mdpi.com/2227-9091/9/5/93 |
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