Suspension of nickel mining in Philippines to impact China nickel ore imports in April

Published: Mar 31, 2020 17:35 (GMT+8)

Save

China’s nickel ore imports from the Philippines, one of the major sources of ore supply, could be badly hit in April as the Philippines has suspended all mining operations in its nickel mining hub...

SHANGHAI, Mar 31 (SMM) – China’s nickel ore imports from the Philippines, one of the major sources of ore supply for China, could be badly hit in April as the Philippines has suspended all mining operations in its nickel mining hub Surigao del Norte from April 1, as an effort to prevent the spread of COVID-19.

Shipments of ores from all mining areas, except for that in the Tubay and Tawi-Tawi areas, will also be affected.

The restrictions will likely impact 70% of the previously estimated imports of 2.5 million mt of nickel ore from the Philippines in April, SMM assessed. Customs data showed that China took 2.41 million mt nickel ore (mixture of dry and wet materials) from the Philippines in April 2019.

Customs data also indicated that China’s imports of nickel ore shrank sharply in February as Indonesia stopped its exports of unprocessed ore from the start of the year.

The Philippines declared a state of emergency on March 25, following it banned the entry of foreign vessels to Surigao del Norte between March 18-31.

Coronavirus impact COVID-19 Market commentary 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

12 hours ago

【Flash | Tubacex October Mo-Bearing Tube Surcharges Are Mixed】

Tubacex issued its October tube alloy surcharges. In euros, hot-/cold-finished 316/316L fell from €5.07/€5.59 per kg (€5,070/€5,590 per tonne) to €5.05/€5.56 per kg (€5,050/€5,560 per tonne). High Mo content materials, with Mo above 2.5%, declined from €5.26/€5.79 to €5.23/€5.76 per kg. Surcharges for 2205 and 2507 were unchanged, while 254 SMO rose from €9.64/€10.62 to €9.67/€10.65 per kg. SMM analysis: most Mo-bearing tube grades were flat or slightly lower, while 254 SMO moved higher, indicating differentiated cost transmission across grades.

12 hours ago

[SMM Stainless Steel Flash] India stainless scrap prices diverge as 304 eases with nickel and tight 316 holds firm

India's stainless steel scrap market moved in different directions in the week ended 1 October. Domestic 304 scrap prices edged lower and import offers followed, while 316 prices held steady in both the domestic and import markets. Weaker LME nickel prices weighed on 304 sentiment, and buyers stuck to immediate requirements as trading slowed over the festive period. Tight availability limited downside for 316. On procurement, short processing windows following the government's relaxation of Pre-Shipment Inspection Certificate (PSIC) requirements, along with additional import costs, continued to limit mills' flexibility. Some mills are evaluating billets, slabs and nickel pig iron (NPI) as alternatives to scrap to manage input costs. Looking further out, the EU's proposal to restrict metal waste exports to India under its new Waste Shipment Regulation (WSR) would, if adopted, further narrow India's scrap import options. In the near term, 304 scrap faces mild downward pressure if nickel stays weak, while 316 is expected to remain firm as long as supply stays tight. PSIC developments and the relative economics of billets and NPI will be key factors to watch.

12 hours ago

【Flash | Metallus Raises October Molybdenum Surcharge Component for 300M Steel】

Metallus set its October raw-material surcharges for Oct 1–30. The Mo component for 300M steel rose 0.52% to $15.176/cwt, about $334.57/t of steel, from $15.098/cwt, or $332.85/t. The listed total surcharge increased 1.03% to $45.054/cwt. Scrap rose to $17.750/cwt, while the separate energy surcharge for bars and tubes fell from $1.296/cwt, about $28.57/t, to $0.050/cwt, or $1.10/t.

12 hours ago