Will Indonesia Replace China as Top NPI Producer? SMM Reports

Published: Jun 13, 2017 10:48

Save

China’s NPI capacity had been expanding since 2007 as the product has been applied as raw material for stainless steel production. But, the turning point occured from 2014.

SHANGHAI, Jun. 13 (SMM) – China’s NPI capacity had been expanding since 2007 as the product has been applied as raw material for stainless steel production. But, the turning point occured from 2014 due to supply shortage of nickel ore and falling nickel prices. In Indonesia, the newly-emerged NPI sector is on the way of expansion.

Indonesia Cuts Base Export Prices of Nickel Ore, Why?

Indonesia is rich in nickel ore resources, with higher quality than Philippine ores. It is relatively cheaper to use nickel ore locally, so many Chinese companies went to Indonesia to build NPI plants after Indonesian ban on raw ore exports from early 2014. NPI capacity in Indonesia expanded at over 100% from 2015 to 2017. SMM predicts Indonesia’s NPI capacity will reach 285,000 tonnes (Ni content) in 2017, with output expected at 160,000 tonnes (Ni content), and both NPI capacity and output is expected to keep growing in 2018 and 2019. For output increment in details, please see Chinese NPI Projects in Indonesia in SMM Nickel Monthly.

Will China NPI Output Keep Falling in June? SMM Reports

In China, there is a different story. After peaking at 1.31 million tonnes (Ni content) in 2014, China is gradually phasing out inefficient NPI capacities along with falling supply of nickel ore and stricter environmental protection inspections. SMM projects that China’s NPI capacity and output will fall to 740,000 tonnes and 365,000 tonnes in 2017, respectively, both measured in Ni content. Both NPI capacity and output is estimated to keep falling in 2018 and 2019.

All these show that Indonesia’s NPI market share is and will be increasing, and its NPI output will approximately reach up to China’s output level in 2019. Its changes in production costs will also play an increasing influence on the market. SMM will make further analysis of NPI capacity costs in Indonesia in our monthly report.

For news cooperation, please contact us by email: sallyzhang@smm.cn or service.en@smm.cn.

npi price npi output china npi output nickel price

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

Feb 28, 2026 16:11

[SMM Stainless Steel Flash] Xinfeng Special Steel’s Phase II Bright Annealing Line Successfully Produces First Coil

On February 8, the 6# line of the Phase II Bright Annealing (BA) unit at Xinfeng Special Steel’s cold continuous rolling stainless steel project successfully produced its first coil, with the 304-series material meeting qualification standards on its initial run. General contracted by WISDRI (South China) Thermal Engineering, the Phase II project utilizes a domestic-first four-stage horizontal bright annealing unit design, featuring the longest muffle and largest TV (Tension-Velocity) capacity in China. As a key component of Xinfeng’s strategy to build a green, intelligent factory, the line reached production capacity immediately upon commissioning and is currently undergoing further optimization and debugging to produce high-grade BA plates and tube-making stock.

Feb 28, 2026 16:11

[SMM Stainless Steel Flash] TISCO’s Self-Developed SUS630 Stainless Steel Plates Break Import Monopoly in PCB Sector

According to TISCO (Shanxi Taigang), its independently developed SUS630 precipitation-hardening stainless steel cold-rolled plates are now being supplied steadily to domestic Printed Circuit Board (PCB) manufacturers. Throughout the recent holiday period, the company's R&D and production teams maintained strict quality control to ensure the material meets the rigorous standards required for 5G communications, automotive electronics, and medical devices. As a core material for the hot lamination process in PCB manufacturing, SUS630 was long dependent on foreign imports; however, TISCO has now become the only stable domestic supplier, successfully breaking the technical blockade.

Feb 28, 2026 16:11

[SMM Stainless Steel Flash] Wenzhou Yigang’s 700-ton Precision Tube Project Receives EIA Approval

The Wenzhou Municipal Bureau of Ecology and Environment officially issued and announced its approval decision regarding the Environmental Impact Assessment (EIA) for Wenzhou Yigang Steel Co., Ltd.’s project. The approved project involves the annual processing of 700 tons of precision stainless steel tubes. This regulatory milestone clears a major legal hurdle for the facility, allowing the company to move forward with the construction and subsequent operation of its precision tube production capacity in line with regional environmental standards.

Feb 28, 2026 16:11