In May, China imported 4.6089 million mt of nickel ore, up 56.5% MoM [SMM Analysis]

According to customs data, China imported 4.6089 million mt of nickel ore in May, up 56.5% MoM and 23.4% YoY, in line with SMM expectations. This was mainly due to the end of the rainy season in Surigao (a major mining area) in May and the rising output of domestic NPI plants and steel mills. The slow Indonesian RKAB approval created hot demand for Philippine nickel ore, pushing up Philippine nickel ore prices. Structurally, medium and high-iron nickel ore dominates current imports, primarily as traditional steel mills found low-nickel, high-iron ore more cost-effective than iron ore amid high and volatile iron ore prices. In addition, with the expected high domestic steel output, the total nickel ore imports in May reached a new high since October 2023. By type, the imports of laterite nickel ore in May totalled 4.5986 million mt, up 58.3% MoM and 23.7% YoY. Among them, the imports from the Philippines were 4.3541 million mt, up 70.3% MoM. The imports of nickel sulphide ore reached 10,300 mt, down 73.8% MoM and 48.6% YoY. Entering June, some regions in the Philippines experienced frequent rainfall, but overall demand for Philippine nickel ore remained high. It is expected that China's nickel ore imports in June will continue to rise.