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

Published: Mar 16, 2020 11:51

Save

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.

Coronavirus impact COVID-19 Nickel ore

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 Stainless Steel Flash] Japan's Chugai Ro Delivers Electric Bright Annealing Line to Romania's Otelinox

Japan's Chugai Ro has delivered an electrically heated continuous bright annealing line (BA3) to Romanian stainless steel producer Otelinox. Ordered in January 2023 and commissioned in December 2025, the line processes stainless steel strip with thicknesses of 0.07–1.0mm and widths of 600–1,320mm. By replacing conventional combustion-based heating with electricity, the facility eliminates direct carbon emissions from the annealing process, avoiding an estimated 2,770 mt of CO2 annually while maintaining product surface quality and brightness. Chugai Ro has now delivered seven bright annealing lines to Otelinox since 1977, including the producer's first electrically heated unit in 1995. The project is expected to strengthen Chugai Ro's European market presence as it expands sales of electric heat-treatment equipment supporting decarbonization and productivity improvement.

1 hour ago

[SMM Stainless Steel Flash] India's JSL to Expand Coin Blank Making Capacity by 20% Amid Rising Global Demand

India's Jindal Stainless (JSL) is expanding its coin blank making capacity by 20% to 12,000 mt/year to meet rising global demand for non-paper currencies. Produced under high-security arrangements at JSL's Special Products Division in Hisar alongside razor blades and precision strips, the coin blanks are customized to exact mint specifications including size, diameter, thickness, shape, and alloy composition. JSL currently supplies unstamped coins to mints in India, France, Finland, Poland, the Netherlands, Malaysia, Slovakia, and the UK's Royal Mint. The company is targeting new markets and additional denomination orders, highlighting stainless steel's lower carbon footprint as a competitive advantage in securing further global contracts.

1 hour ago

[SMM Stainless Steel Flash] Nippon Kinzoku Starts Production of Ultra-Thin Stainless for Insulin Needle Laser Welding

Japanese stainless steel producer Nippon Kinzoku has commenced mass production of ultra-thin, narrow-width stainless steel optimized for laser welding in ultra-fine insulin needles, establishing a stable supply system in response to growing global demand. As 30G, 31G, and 32G ultra-fine needles gain wider adoption driven by compact pen injectors and weight-management medications, laser welding is increasingly replacing traditional TIG and plasma welding, enabling welding speeds over significantly thinner base materials. The new material features a representative thickness of 0.08mm and width of 6.3mm, more than 50% thinner than the 0.2mm/12.8mm specification used for TIG/plasma welding — with high-precision dimensional tolerances, consistent weldability across coils of up to 4,000 meters, and sufficient workability for drawing into ultra-fine needles without fracture. Nippon Kinzoku already supplies its NK-304NKM specialized stainless steel for thin-walled welded tubes used in medical and cosmetic applications.

1 hour ago