Philippines to ban entry to Northern Surigao for 2 weeks over COVID-19

Published: Mar 16, 2020 11:51
The Philippines will ban vessels from entering Surigao del Norte from March 18 to the end of the month, growing concerns about nickel ore supply as the country is the world’s largest exporter of the raw material for stainless steel and nickel pig iron (NPI) following Indonesia’s export ban effective from this year. The ban, which has been signed, is aimed at preventing the spread of the COVID-19 pandemic, which has claimed 12 lives out of 140 confirmed infections in the Philippines.

SHANGHAI, Mar 16 (SMM) – The Philippines will ban vessels from entering Surigao del Norte from March 18 to the end of the month, growing concerns about nickel ore supply as the country is the world’s largest exporter of the raw material for stainless steel and nickel pig iron (NPI) following Indonesia’s export ban effective from this year.

 

The ban, which has been signed, is aimed at preventing the spread of the COVID-19 pandemic, which has claimed 12 lives out of 140 confirmed infections in the Philippines.

 

Nickel ore mines and exporters including PGMC, TMC, HMC and ADNAMA in the northern part of Surigao, which is the major nickel ore producing region in the Philippines and produces nickel ore of good quality, will have to suspend shipments for two weeks on the back of the ban.

 

Exports of medium-grade nickel ore are expected to feel the impact, but the impact from the two-week ban is unexpected to be significant as the Surigao region is unlikely to shrug off impact from the wet season until at least April.

 

The entry ban will not cover the whole Surigao region such as Surigao del Sur, but uncertainty lingers as ships entering southern Surigao used to be inspected at the anchorage ground of Surigao del Norte.

 

China is the top importer of Philippine nickel ore, and its imports of nickel ore have been low so far this year as Indonesia banned exports from January and Surigao remained in the wet season. Inventories of nickel ore at Chinese NPI producers are expected to be depleted if the ban extends into April or spreads to other regions.  

 

Chinese NPI producers have already been beleaguered by competition from Indonesian rivals, demand and supply imbalance and firm prices of nickel ore. They are set to face greater pressure if nickel ore imports from the Philippines dwindle sharply.

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
El Niño Drought in Indonesia May Affect Nickel Pig Iron Production at IMIP Park
4 mins ago
El Niño Drought in Indonesia May Affect Nickel Pig Iron Production at IMIP Park
Read More
El Niño Drought in Indonesia May Affect Nickel Pig Iron Production at IMIP Park
El Niño Drought in Indonesia May Affect Nickel Pig Iron Production at IMIP Park
[SMM Nickel Flash] September 21 - According to SMM, due to the El Niño phenomenon, Indonesia has experienced drought conditions, with local production water supply under pressure and transportation conditions disrupted. Nickel pig iron production at Indonesia's IMIP industrial park may be affected in October, though specific production plans have not yet been clarified. Given current market inventory levels, the impact on the overall supply-demand pattern is expected to be limited in the short term. SMM will continue to monitor changes in water supply and production operations at the park.
4 mins ago
Data: SHFE, DCE market movement (Sep 21)
1 hour ago
Data: SHFE, DCE market movement (Sep 21)
Read More
Data: SHFE, DCE market movement (Sep 21)
Data: SHFE, DCE market movement (Sep 21)
The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on 21 Sep , 2026
1 hour ago
[SMM Nickel Flash News] Daily Update — September 21, 2026
4 hours ago
[SMM Nickel Flash News] Daily Update — September 21, 2026
Read More
[SMM Nickel Flash News] Daily Update — September 21, 2026
[SMM Nickel Flash News] Daily Update — September 21, 2026
In terms of prices, Indonesian nickel ore CIF average prices remained at the latest assessed levels: 1.2% Ni: CIF average price at $27/wmt 1.4% Ni: CIF average price at $51.8/wmt 1.5% Ni: CIF average price at $58.5/wmt 1.6% Ni: CIF average price at $63.4/wmt Indonesia Policy & Market Update — September 21, 2026 The Indonesian nickel ore market remains cautious as market participants continue to monitor the progress of supplementary RKAB approvals. Additional approvals are gradually entering the market, but the total volume of supplementary quota has yet to be officially released. PT Vale Indonesia is also awaiting approval for additional RKAB quota for its operations, with the company having previously indicated that its initial allocation covered only part of its requested volume. Meanwhile, the revised nickel ore HPM formula, effective September 15, has lowered the HPM for low-grade limonite. The 1.2% Ni limonite HPM has fallen to $24.89/wmt, significantly below current market prices. Market attention is now focused on how additional RKAB supply and HPAL demand will affect limonite pricing and whether market prices will gradually move closer to the new HPM level. Overall, RKAB approvals, the release of additional quota and the response of HPAL and RKEF buyers remain the key factors to watch for the Indonesian nickel ore market in the near term.
4 hours ago