China Sees Big Decline in Nickel Ore Inventories after Transportation Ban, SMM Reports

On October 2, protests over mining-related dust and environmental impacts escalated into unrest at PT Astima Konstruksi (PT Askon) in Matarape Village, Morowali Regency, Central Sulawesi, Indonesia. Local media reported that protesters burned several vehicles and excavators, while access to the company's hauling road and jetty was blocked, disrupting material transportation. Police subsequently evacuated Chinese nationals from the site. The incident has raised concerns over potential disruptions to nearby nickel mining and logistics activities. However, as of October 5, no confirmed reports have established the extent of production suspensions or reductions at specific nickel mines. Further attention should be paid to the restoration of transportation access, local security conditions, and any subsequent impact on nickel ore supply.

Froch Enterprise, a stainless steel pipe maker in Taiwan (PoC), reported a marked improvement in first-half profitability. The company said higher nickel prices lifted product prices, boosting both pre-tax and after-tax profit in August. Construction of AI and semiconductor facilities is driving demand for cleanroom, pure water and plant infrastructure piping, and industrial piping now makes up 70% of its product mix. Overseas, Froch decided in 2023 to invest in a plant in Morocco to diversify its production base and target European markets. After earlier schedule adjustments, equipment installation is progressing, with marketing planned for the fourth quarter, trial runs by year-end and commercial production in the first quarter of 2027; the plant is expected to contribute to profit once output stabilises. Following YC INOX's cold-rolling expansion in Türkiye, Froch is likewise placing capacity close to Europe, as pipe makers in Taiwan (PoC) increasingly use third-country bases to reach the European market. With EU quotas tightening and origin now determined by melt and pour, where the Morocco plant sources its stainless coil will decide the origin status, and the quota, its products face on entering Europe.

YC INOX, a stainless steel pipe maker in Taiwan (PoC), continues to reshape its product mix, with industrial piping, special clean pipes and liquid cooling pipes for AI data centres accounting for nearly 70% of first-half shipments. The company was profitable in the first half, with second-quarter results clearly improving on the first. Overseas, its Turkish subsidiary posted a sharp rise in second-quarter revenue and record shipments in June. Output from the local cold-rolling line is ramping up, with a target of roughly a third more, to cut raw material costs and avoid Turkish import duties on cold-rolled coil. AI liquid cooling is emerging as a new source of demand for stainless pipe, while local cold rolling in Türkiye both sidesteps import duties and brings the company closer to European and Middle Eastern markets. A point to watch is where the Turkish line sources its hot-rolled feed: if it uses black coil from Indonesia or elsewhere, any exports to the EU will still be subject to melt-and-pour origin rules.