HK Stock Market Move | LYGEND RESOURCE(02245) surged more than 5%, Indonesian nickel smelters may be warned to stop production, the company has potential for future expansion in the industry chain layout.

LYGEND RESOURCE (02245) rose more than 5%, at the time of writing, it rose by 4.85%, reaching 18.36 Hong Kong dollars, with a turnover of 3065.67 million Hong Kong dollars. On the news front, recently, according to market insiders, a large smelter in Indonesia, controlled by a Chinese company, is reducing production due to its tailings pond reaching full capacity. This event highlights the increasingly serious waste management problems in the nickel industry. According to Arif Perdanakusumah, chairman of the Indonesian Nickel Smelting Association (FINI), the Indonesian nickel industry is facing increasing pressure as nickel ore supply in Indonesia is struggling to keep up with the rapid expansion of smelting capacity, with several smelters even warning that they may be forced to stop production. CICC has previously pointed out that LYGEND RESOURCE currently covers the complete industry chain of nickel ore trading, smelting production, equipment manufacturing, and sales. The company has signed long-term trade and supply agreements with mining companies in the Philippines and Indonesia in the upstream, with a total capacity of 400,000 metric tons of nickel on Obi Island in Indonesia in the midstream, and extending downstream to include nickel cobalt sulphate, forming a comprehensive nickel product service system. The bank believes that the company's wet production capacity in Indonesia is expected to benefit, and there is potential for expanding the Indonesian nickel industry chain layout in the future, driving the company's performance and valuation upwards.