China Nickel Ore Imports Fell in Aug despite Expected Restocking ahead of Rainy Season

SHANGHAI, Sep 20 (SMM) - According to customs data, China imports of nickel ore totalled 4.34 million mt (wmt and dmt mixed) in August 2022, down 0.7% MoM and 24.9% YoY. The import volume fell slightly in August and was less than expected, and the market remained tightly balanced. Domestic nickel ore imports totalled merely 23.85 million mt in the first eight months, down 13.1% YoY.

By variety, the import volume of sulphide ore added 15.9% MoM to 37,600 mt with high production of domestic smelters that resulted in steady demand growth.

And the fall in the import volume of laterite nickel ore led to lower than expected ore imports in August. First of all, the stainless steel and NPI market remained poor throughout the market, weighing on the prices and output. Hence the smelters were less interest in restocking in large amount, restricting the total imports. In addition, there were also weather factors that restrict the inflow of the Philippines and Nouvelle-Calédonie nickel ores. In August, the imports from the Philippines and Nouvelle-Calédonie stood at 3.8 million mt and 130,000 mt respectively.

It is expected that the subsequent import volume of laterite nickel ore may increase as there still exists restocking demand ahead of the rainy season. The short-term restocking demand for low-grade nickel ore that is scarce in supply in the rainy season is relatively concentrated, and the import volume of medium and high-grade ore will gradually increase with the improvement of the weather conditions and the recovery of downstream demand.