According to customs data, China imported 723,600 mt of NPI and FeNi in April, up 14.27% MoM and 8.01% YoY. The metal content stood at 99,000 mt, up 3.66% MoM and 5.17% YoY.
Specifically, NPI imports were 703,200 mt in physical content, up 13.84% MoM and 11.96% YoY. Although new Indonesian NPI capacity was commissioned in April, the overall output increased slowly due to slow nickel ore approval and limited high-grade ore inventories at smelters. The export resource tax tickets were also scarce. Though recovering, April China NPI imports still underperformed February levels. Indonesia sourced Philippine nickel ores to adjust the silicon-magnesium ratio to keep the nickel content in NPI from declining sharply. According to SMM, Indonesian NPI production slightly increased in May. As nickel ore approval accelerated, export resource tax ticket scarceness was alleviated. In addition, with the significant increase in scheduled production at steel mills in May, China NPI imports from Indonesia will rise compared to April.
FeNi imports were 20,400 mt in physical content, up 31.44% MoM but down 51.19% YoY. The nickel content stood at 4,600 mt, up 19.60% MoM but down 55.32% YoY. Currently, domestic FeNi mainly comes from New Caledonia (+3.69% MoM) and Colombia (31.65% MoM). Imports from South Korea rose by 201.88% MoM, followed by The Former Yugoslav Republic of Macedonia which exported to China the second time since May 2022. According to SMM, Arrow Metal reduced production due to FeNi losses, with the total output limited. Additionally, the current turmoil in New Caledonia may affect FeNi production and shipments from Koniambo and Doniambo. It is expected that China's total FeNi imports in May may decline compared to April.
