Clearance Volume of Pure Nickel Falls 13% MoM in November 2022

SHANGHAI, Dec 22 (SMM) -According to customs data, China imported 14,521 mt of refined nickel (including unwrought unalloyed nickel with a total amount of nickel and cobalt ≥99.99% and cobalt ≤0.005%, and other unwrought unalloyed nickel) in November 2022, a month-on-month increase of 19.97% but a year-on-year drop of 44.30%. The imports of other unwrought alloy nickel accounted for 88.71% or 12,881 mt, down 45% YoY. In addition, imports of unalloyed nickel powder and flake (75040010) in November were 995 mt, down 66.44% MoM and 58.61% YoY. The import volume of nickel briquettes stood at 3,354 mt in November 2022, up 9.95% MoM but down 51% YoY. The major suppliers of pure nickel were Russia (6,247 mt), Australia (2,551 mt), Canada (2,161 mt), Madagascar, etc.

The customs clearance volume was 12,999 mt in November 2022, down 13% MoM, which is in line with expectations.  According to SMM statistics, imports of nickel were at a loss in November, hence the customs clearance volume of refined nickel decreased while the imports grew. The output of nickel sulphate was on the rise, up 3.83% month-on-month, which failed to drive the imports of nickel briquettes and nickel powder with lower cost efficiency. In terms of stainless steel, the output of the 300-series dropped MoM because of the high costs and slack demand. But the pure nickel consumption by the alloy companies rose in November, hence the imports of nickel briquettes grew 9.95% MoM in November. In December, the SHFE/LME nickel price ratio once slumped to 7.00 as the price difference between domestic and overseas markets expanded, and the import losses reached 31,000 yuan/mt. Therefore, the bonded zone inventory was on the rise. In general, the customs clearance volume of pure nickel will continue to drop in December due to factors such as import losses.