Indonesia's nickel reserves may soon be exhausted, as per the Mineral and Coal Program Development at the Indonesian Ministry of Energy and Mineral Resources. The reserves could run out in less than five years. Nickel and stainless steel scrap prices surged in Asia on Monday, with 304 prices also on the rise. The US reporting season is witnessing positive surprises. Meanwhile, the German Finance Minister is urging an end to opportunistic subsidy demands by large corporations.

US Reporting Season: Positive Trends Abound
In the ongoing US reporting season, a significant number of companies are surpassing expectations. 77% of S&P 500 firms are reporting profits higher than anticipated, averaging a 7.8% increase. Notably, communication service providers and tech companies are experiencing substantial profit growth, at 24.1% and 19.1% respectively. Forecasts indicate a further 10.7% profit increase for the fourth quarter, with potential growth reaching 15% by 2025. These positive projections are buoying the S&P 500 index.

German Finance Minister Calls for Subsidy Reevaluation
Christian Lindner, the German Finance Minister from the FDP, has criticized the overemphasis on larger corporations with vested interests such as Intel and Thyssen-Krupp. In his widely discussed document "Wirtschaftswende Deutschland" (Economic Turnaround Germany), Lindner highlights the need to shift focus towards small and medium-sized enterprises.

Lindner argues that the opportunistic behavior of large corporations, seeking short-term gains through subsidies, fosters economic uncertainty. This approach leads to a scenario where subsidized companies develop outside market forces, becoming dependent on continuous subsidies for survival.

Indonesian Nickel Reserves at Risk of Depletion?
Recent reports indicate mounting challenges in Indonesian nickel mining, not only environmentally but also in terms of resource availability.

Julian Ambassadur Shiddiq, the Director of Mineral and Coal Program Development at the Indonesian Ministry of Energy and Mineral Resources (ESDM), has expressed grave concerns regarding the dwindling nickel reserves in Indonesia.

Nickel Ore Reserves Depleted in 5 Years
The current projections suggest that Indonesia lacks the capacity and reserves to meet the annual demand of approximately 1 billion MT of nickel ore. At the current forecasted rate, Indonesia's reserves could be depleted within 4 to 5 years. The country is struggling to issue adequate mining licenses, forcing many nickel smelters to rely on imports from the Philippines.

Rising Stainless Steel and Raw Material Prices in Asia
Nickel prices in Asia saw an uptick on Monday, with nickel contracts on the SHFE commodity exchange rising by up to 1.1%. Spot prices for nickel also increased by 0.9%, while stainless steel scrap prices improved by around 1%. These price hikes in commodities have also impacted the 304 market, with Chinese spot prices rising by approximately 0.4% today.