SMM Analysis Of Indonesian NPI Production In May And Forecast For June

Telah Terbit: Jun 13, 2024 09:20
Sumber: SMM
In May, Indonesian NPI production was 112,600 mt in metal content, up 0.63% MoM but down 4.5% YoY.

In May, Indonesian NPI production was 112,600 mt in metal content, up 0.63% MoM but down 4.5% YoY. The production in 2024 totalled 578,200 mt in nickel content, up 10.3% YoY. Supply side, although the RKAB approval quotas for Indonesian laterite nickel ore increased to 217 million wmt in May, the growth in the circulating supply remained slow. Therefore, the prices of Indonesian high-grade laterite nickel ore for domestic trade remained high. In May, more laterite nickel ore from the Philippines compensated for the supply gap in the Indonesian market. Demand side, with the recovery of high-grade NPI prices and the output ramp-up from new production lines in Indonesia, Indonesian NPI smelters were more willing to purchase nickel ores. In the short term, the supply tightness of Indonesian laterite nickel ore will not significantly improve. It is expected that in June, with the continuous rise in the prices of Indonesian laterite nickel ore for domestic trade, the raw material costs for Indonesian NPI smelters will further increase, resulting in a limited increase in the expected production.

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