BMO Metals Brief

Research evidence excerpt

BMO Metals Brief

the start of the

year, which saw nickel prices rise from ~$14,500/t to $18,000/t at the end of 2025. Miners are $/oz 4,400

set to apply for increases in their RKABs at the start of next month. Meanwhile, PT Gunbuster

Nickel Industry, one of the country’s biggest nickel plants with a capacity of 1.8Mtpy nickel pig 4,200

iron, has been placed under temporary debt suspension by a local court.

 Asia thermal coal imports rebound as LNG prices drive fuel switching: Asia’s seaborne thermal 4,000

coal imports are set to rise to 77.4Mt in June, a six‑month high and up 22% y/y, according to

Reuters citing Kpler data, as utilities shift towards coal amid elevated LNG prices following 3,800

disruptions linked to the Strait of Hormuz. Imports into Japan and South Korea are leading gains, 26 Mar 26 Apr 26 May 26 Jun

rising 33% y/y and 41% y/y respectively, as coal remains relatively cheaper than LNG despite Source: Bloomberg, BMO Capital Markets

Newcastle prices still ~16% above pre-war levels. China is also increasing purchases, with arrivals

forecast at 27.7Mt (+48% y/y), supported by softer domestic output and stronger thermal

generation, while India’s imports remain subdued as higher prices and greater reliance on Spot Iron Ore

domestic coal continue to weigh on seaborne demand. 115

 US Army to host critical mineral plants: The US Army has selected its first companies to develop

critical mineral processing facilities on US military bases, following the announcement of the plan 110

in May. Realloys Inc, Titan Mining Corp, Energy X and Ioneer Ltd have all reached agreements

with the Pentagon to build facilities for processing rare earths, graphite, lithium and boron

respectively, according to a US army statement yesterday.