Nickel ore prices remained stable after the holiday, with bearish expectations persisting [SMM Analysis]

Indonesian Nickel Ore Market

Last week, the focus in the Indonesian nickel ore market was whether WBN could fulfill the approval of new RKAB quotas. The market has seen multiple rounds of rumors and discussions on this. So far, there has been no significant large-scale approval of nickel ore quotas from Indonesia, so the premium for domestic trade laterite nickel ore remains stable in the short term, with mainstream premiums holding at $22-23/wmt. Although there are reports of prices below $22/wmt, their volume and quality do not compare to mainstream traded nickel ore. Additionally, this month, Indonesia's purchasing sentiment for medium-grade laterite nickel ore from the Philippines has significantly declined. It is expected that before the release of new quota approvals, the premium for Indonesian domestic trade laterite nickel ore will continue to remain stable.

Philippine Nickel Ore Overview

After the National Day holiday, domestic purchasing enthusiasm for Philippine nickel ore did not increase significantly. Due to the rise in domestic high-grade NPI prices and the large-scale supply impact from the unfulfilled Indonesian RKAB nickel ore quotas, the price of Philippine laterite nickel ore did not show significant fluctuations last week. However, downstream smelters have limited demand expectations for the fourth quarter, and with the rainy season approaching in the Philippines, the available supply time in major production areas is entering the countdown phase. It is expected that there is still room for a gradual decline in Philippine laterite nickel ore prices in the future.