China Imports of Nickel Ore Still Lower Than in Previous Years in May

SHANGHAI, Jun 22 (SMM) - According to customs data, China imported 3,844,100 mt of nickel ore in May 2022 (a mixture of wet and dry base), an increase of 54.4% MoM and 4.3% YoY, with nickel ore imports gradually recovering. However, so far, the combined imports of nickel ore in 2022 were only around 10.84 million mt, down 6.9% year-on-year. The import volume is still less than the level in previous years. In addition, nickel ore stocks at ports also see no significant increases, and are at a historical low.

In May, 3.27 million mt of laterite nickel ore was imported from the Philippines, an increase of 78.3% MoM and a drop of 6.74% YoY. The poor weather conditions in the Philippines did not improve until mid-May, with mine shipments and vessel loading and unloading efficiency affected. And relative infrastructure repairs were required. The recovery of nickel mine operations after the rainy season was not as fast as expected.

Laterite nickel ore imported from New Caledonia stood at 255,600 mt in Ni content, up 108.8% MoM. Although the market weakened in May, high quality nickel ore was favoured by NPI plants. Combined with fewer supply, prices were relatively firm. In addition, sulphide ore imports were about 40,400 mt in May, up 21.4% MoM.

The subsequent nickel ore imports are expected to continue to rise, with the main increment coming from laterite nickel ore from the Philippines. And nickel ore supply-demand balance could hardly see a significant surplus, while nickel ore stocks at ports may remain low in the short term.