SMM analysis on June Indonesian NPI output and July forecast

Telah Terbit: Jul 11, 2024 13:42
Sumber: SMM
In June, Indonesian NPI production was 112,200 mt in metal content, down 0.36% MoM and 8.5% YoY.

In June, Indonesian NPI production was 112,200 mt in metal content, down 0.36% MoM and 8.5% YoY. The production in H1 totalled 690,400 mt in metal content, up 6.8% YoY. Supply side, there was new progress in the RKAB approval for Indonesian laterite nickel ore in June, with cumulative approval quotas of 220 million wmt this year. The approval quotas for 2025-2026 are around 200 million wmt each year. However, the circulating supply of laterite nickel ore in the Indonesian market remained limited, impacted by weather factors. NPI smelters rushed to purchase nickel ore, leading to a strong premium, significantly raising the production costs of Indonesian NPI in June. In addition, with the accelerated progress of some NPI production lines switching to high-grade nickel matte ones, Indonesian NPI production experienced slight fluctuations in June. It is expected that with the successive commissioning of new NPI production lines in Indonesia and the continued conversion of some projects to nickel matte, Indonesian NPI production in July will hold largely stable, with limited room for a significant increase.

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SMM analysis on June Indonesian NPI output and July forecast - Shanghai Metals Market (SMM)