SHANGHAI, Jun 25 (SMM) – Worries over nickel ore supply from Indonesia linger as participants await the result of the country’s quota distribution for the third quarter, SMM believes.
This is despite mines resuming their normal shipments from June 21 after the holy month of Ramadan ended.
However, shipments leaving Indonesia are likely to shrink in July when approved export quotas at Ceria and Harita mines expire. Shipments from Ceria and Harita totaled some 400,000 wmt on average every month before the holiday, accounting for 24% of the overall shipments in May. Ifishdeco mine has used up its export quotas. All these three mines have yet to secure new approvals, SMM learned.
Possible cancellation of export quotas at Blackspace, Integra and Toshida mines is also likely to further suppress the supply from Indonesia. This is due to the slower-than-expected development of their smelting projects.
Nickel ore exports from Indonesia may amount to about 22 million wmt in 2018, based on remaining export approvals that exclude those at Blackspace, Integra and Toshida mines.