Who Will Have Final Say on Nickel Ore Supply in 2017 after Indonesian Ore Reappears? SMM Reports

Published: Jun 27, 2017 17:54

Save

Will Indonesia, the ever top supplier of nickel ore in the world, rule market supply again?

SHANGHAI, Jun. 27 (SMM) – China imported 263,851 tonnes of nickel ore from Indonesia in May, according to China Customs, the first appearance after Indonesia’s ore export ban in early 2014. Will Indonesia, the ever top supplier of nickel ore in the world, rule market supply again?

The answer is probably not in 2017, SMM guesses, with reasons below.

Update of Antam Nickel Ore Export Quotas

First, only two companies in Indonesia have been permitted to export nickel ore by the government so far, namely Antam and Zhenshi Group’s Fajar. Based on export quotas of approximately 3.60 million wet tonnes of the two, its proportion in China’s ore import volumes, averaging 30 million tonnes of laterite nickel ore annually, is not outstanding.

Second, it is still a buyer’s market in China’s nickel ore market, and meanwhile, offers of Indonesian ore are relatively higher, with no price advantages. Such condition also gives no bright picture of demand for Indonesian ore.

Will Indonesia Replace China as Top NPI Producer? SMM Reports

Third, Antam has its maximum monthly shipping capacity of about 4-5 ships, SMM learns, and based on this, it might be difficult for the company to finish its export quota of 2.60 million tonnes.

To sum up, SMM predicts that Philippine nickel ore will continue to dominate market supply in 2017, and the appearance of Indonesian ore will not change the supply pattern over the year.

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

nickel prices nickel ore prices china nickel ore inventories

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 for 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

1 hour ago

[SMM Nickel Morning Meeting Summary] Fed Official's Dovish Remarks Ease Macro Pressure, the Most-Traded SHFE Nickel Contract Consolidates and Pulls Back in Early Trading

[9.7 Morning Meeting Minutes] US Fed Governor Waller turned dovish, and expectations for a September rate hike cooled significantly. Waller said recent data finally showed signs of slowing inflation, and if data over the next two weeks continue this trend, he would lean toward supporting keeping rates unchanged in the 3.50%-3.75% range; but he also warned that if inflation data come in hot, a September hike remains possible. Overnight, US stocks rose for a second straight day, with the S&P 500 posting its biggest one-month gain (+1.06%) and the Dow up 1.18%, while the 10-year Treasury yield pulled back to 4.766%. The most-traded SHFE nickel contract (2610) consolidated lower in early trading and closed the morning session at 127,940 yuan/mt, down 0.60%. Waller's dovish remarks cooled expectations for a September hike, and the US dollar and Treasury yields pulled back, marginally easing macro pressure. However, overnight LME nickel edged lower against the trend and clearly underperformed copper and other base metals, while high inventory and weak demand remained unchanged, leaving nickel prices with insufficient rebound momentum. In the short term, the most-traded SHFE nickel contract is expected to trade in a range of 127,000-131,000 yuan/mt.

1 hour ago

2 hours ago

[SMM Stainless Steel Flash] EU Stainless Steel Imports Fall 21% YoY in H1 2026; Outokumpu Warns of Q3 Volume Decline

According to Eurostat data, EU imports of stainless steel flat products, long products, and tubes totalled 645,500 tonnes in H1 2026, down 21% YoY, with flat products posting a sharper 35% decline. Analysts note the significant contraction reflects broad market caution ahead of the EU's new steel safeguard measures, 50% out-of-quota duties, and melt-and-pour rules. Outokumpu CFO Marc Simon Schaar acknowledged that EU trade measures are supporting demand, but noted that weak end demand has reduced scrap generation, keeping scrap costs elevated; the company expects Q3 sales volumes to decline by up to 10% QoQ. Critics argue the subdued buying appetite is partly self-inflicted, a direct consequence of the market uncertainty created by domestic producers' persistent calls for trade protection.

2 hours ago

17 hours ago

[SMM Nickel Flash] Pure Battery Technologies Advances US$350 Million Batang pCAM Project

Australia-based Pure Battery Technologies (PBT) is advancing plans to invest around US$350 million in a precursor cathode active material (pCAM) facility at the Industropolis Batang Special Economic Zone in Central Java, with the project currently in the engineering stage and construction targeted to begin in 2027. The facility is planned to process mixed hydroxide precipitate (MHP) supplied by Indonesia’s domestic HPAL industry into higher-value pCAM, helping fill a key gap between Indonesia’s rapidly expanding nickel processing capacity and downstream battery-cell manufacturing. The project is expected to employ around 1,000 workers during construction and approximately 200 during operations.

17 hours ago