Global nickel production to decline 7.4% this year (GlobalData)

According to GlobalData, global nickel production will decline in 2020 by 7.4%. In question, the decision of Indonesia to ban this year the exports of raw ore, associated with the restrictions due to the Covid-19 pandemic in the Philippines in particular.
Global nickel production will decline 7.4% this year to 2.19 million tonnes. According to a report by GlobalData published this week, this drop will be the consequence of the ban on the export of raw ore decided at the beginning of the year by Indonesia, the world's largest producer, even though the Covid-19 pandemic has contributed to make the situation worse.

“Indonesian nickel mining companies without an integrated crude smelting system have found it difficult to sell their output to national smelters […]. As a result, domestic miners have either stopped or reduced production in the first three quarters and this is expected to continue until the end of the year, ”says Vinneth Bajaj, senior analyst at GlobalData, who th…

Saudi Arabia punishes Turkey by boycotting its products

Recep Tayyip Erdogan's Turkey, which is increasingly present on all external fronts, in Libya, Syria or the Caucasus, must face at home a new ... trade war: Saudi Arabia is now boycotting Turkish products.

Saudi Arabia punishes Turkey by boycotting its products

The Saudis have launched a silent offensive. Discreet instructions were given to companies. And about ten days ago a call to boycott Turkish imports, businesses and investments was proclaimed on Twitter not by the government but by the president of the Saudi Association of Chambers of Commerce, a seemingly independent body. of political power. Riyadh is responding with this economic weapon to Turkey's diplomatic aggressions. Ankara with its political and military activism in Arab countries de facto opposes the model and line promoted by Saudi Arabia. This trade retaliation is starting to be felt harshly in Turkey: this weekend the business community has sounded the alarm bells and calls for an amicable settlement to end it.

What are the effects of these sanctions which do not speak their name?

The heaviest consequences affect the textile industry, as Turkey is one of the workshops of global fashion. It exports clothes to Saudi Arabia, sold by European or American brands in their Saudi stores. And these order givers are taking the Saudi boycott seriously. The Spaniard Mango has warned his Turkish suppliers that he was looking for an alternative because of the customs slowdown endured by made in Turkey when entering the Saudi market. Exporters of fresh agricultural products are also suffering, their cargoes perish, stranded at the Saudi border. Turkey also exports carpets, chemicals, steel. So many products that can suffer the zeal of Saudi customs officials. This is a blow to all the companies concerned, at a time when their activity is already penalized by the pandemic, but it is not likely to bring the Turkish economy down.

Because Saudi Arabia is a minor outlet for Turkey

Last year Turkey exported $ 3.2 billion worth of goods to that country. Out of a total exports of 170 billion dollars. Or about 2%. Its imports of $ 1.9 billion are mostly petroleum products, which it can find elsewhere. If we compare Arabia with other Arab countries, it remains a secondary trade partner of Turkey, its Iraqi neighbor being its main outlet in the region, followed by the United Arab Emirates and Egypt. Arabia is not a major Arab investor in Turkey either, Qatar is the most important; Qatar, which has strengthened Turkish economic support since it was ostracized by other Gulf countries.

This rapprochement is also part of the Saudi grievances. In fact, it has been three years since trade relations between the two countries deteriorated, Saudi imports have been falling steadily since 2015 according to statistics provided by the kingdom. A failure for President Erdogan who wanted to redirect trade towards the east. With the Arab countries it is still wishful thinking; Turkey's economy is more than ever tied to that of Europe, by far its largest trading partner. The one that absorbs almost half of its exports and provides it with nearly a third of its imports.