[SMM Nickel Flash] Canadian Awaruite Project to Bypass Smelting with 60% Ni Concentrate

The United States currently operates no domestic nickel smelters, leaving North America entirely reliant on just two remaining pyrometallurgical facilities in Canada. Compounding this critical supply chain vulnerability, a recent report by the Carnegie Endowment for International Peace projects that the US will face a massive annual nickel deficit of approximately 741,987 tonnes by 2035. To address this severe shortfall, awaruite (a naturally occurring nickel-iron alloy) is emerging as a strategic solution. Because awaruite concentrate can bypass traditional smelting and be directly converted into nickel sulfate, it is favorably positioned to qualify for the US Section 45X Advanced Manufacturing Production Credit, helping to secure domestic defense and EV battery supply chains.

According to market research, European stainless steel producers successfully lifted prices in March, driven by rising scrap costs, volatile energy prices, and limited import competition. Transaction prices for grade 304 cold-rolled coil reached an 18-month high as all European producers implemented month-on-month increases. Domestic mills are seeing improved order books, with lead times now extending into June and some delivery delays reported, particularly for ferritic materials. Producers are targeting further increases for July production, with some offers for grade 304 cold-rolled sheet already around $2,916/mt (EUR 2,700). Market participants note that mills aim for a target selling price of approximately $3,240/mt (EUR 3,000) in the coming months.

Ferroglobe’s South African unit has warned it may halt its remaining furnace operations unless it receives electricity tariff relief by Wednesday. The company, which produces ferrosilicon crucial for steel and stainless steel production, cited a 900% surge in electricity prices since 2007, which now accounts for over half of its total production costs. With an impending 9% Eskom tariff hike, continued operations are deemed financially unviable. Industry leaders highlighted a growing disparity: while government tariff relief talks have prioritized ferrochrome producers, other alloy smelters are left exposed. If a workable tariff (estimated at 62c/kWh) is not granted, Ferroglobe will initiate widespread retrenchments in early April and may shift production entirely out of the country.