Nickel Ore Market Reports Low Buying Interest

Zhongwei shares issued an announcement last night that, in view of the company's continued optimism in the high nickel matte recovered from nickel laterite smelting, its wholly-owned subsidiary Zhongwei Hong Kong New Energy reached a supplementary agreement with RIGQUEZA to make additional investments in the joint venture PT.ZhongTsing New Energy. The two parties agreed to build a new laterite smelting project in Indonesia (Phase II) with an annual production capacity of 30,000 m of high nickel matte in metal content on top of Phase I project.

The current tightness of NPI, coupled with the upward trend in cost-end prices (mainly rising electricity prices) and the reduction in NPI output caused by power rationing, has made the problem of NPI shortage more difficult to solve.

Customs data showed that China imported 5.78 million mt (wmt and dmt mixed) of nickel ore in August, up 11.4% month on month and 54.2% year on year.

Nickel ore inventories across all Chinese ports declined 200,000 wmt from July 3 to 7.88 million wmt as of July 10, showed SMM data.

One medium-to-large NPI producer in north China bought Ni 1.5% ore at CIF price of $38 per wet tonne, Shanghai Metals Market learns.

CIF price for Ni 1.5% ore has kept falling since mid September due to falling nickel price, ample ore supply and low buying interest at NPI producers.

China imported 3.70 million tonnes of nickel ore in July, down 40,300 tonnes or 1.08 per cent MoM, but up 416,000 tonnes YoY, according to China Customs. 

The final assessment on mining companies, which had been ordered for suspension and cancel by former secretary Gina Lopez in an intensified government environment crackdowns, will be released soon.

Last week, medium and high-grade nickel ore price, both for spot and future delivery, held largely stable, tracking steady movements in the high-grade NPI market. 

This past week, LME nickel declined from $9,445 to $9,035 per tonne. What’s the price outlook in the coming week?