[SMM Analysis] what is the impact of the import of domestic nickel mines that the Philippines intends to extend the two-week blockade period?

Published: Aug 5, 2020 10:51

SMM8: according to the latest news, due to the increasing number of novel coronavirus's diagnoses, some countries, including Vietnam and the Philippines, may have to block their countries again. The Vietnamese government called on citizens to be quarantined at home, restricted activities in public places and restricted activities in religious places. It is understood that since the first announcement of the confirmed case of novel coronavirus in Hanoi, there have been 2 confirmed cases in Vietnam.

At the same time, Philippine President Duterte admitted that the epidemic in the country is very serious, health care workers and health implementation can hardly bear the burden, Duterte said that all health care workers to fight the epidemic. With the recent surge in novel coronavirus cases in the Philippines, the Philippine government announced on the 2nd that Manila, the capital, and several surrounding provinces will implement stricter "community quarantine" measures than the current one from the 4th for a period of two weeks. It is understood that the Philippine blockade will be extended until August 18.

According to SMM, this blockade is the second blockade order issued by the Philippine government since the epidemic. On March 7, Philippine President Duterte declared a state of health emergency in the Philippines, and then the scope of the blockade gradually expanded. The Philippines, as China's largest exporter of nickel ore, has also been affected and suspended shipments. Since March 18, several major mining areas in the Philippines have been gradually closed. The time of the ban on shipments was postponed from April 18 to the end of April, and Sanxianlis, near the capital, was gradually released in mid-May.

Affected by this, China's total imports of Philippine nickel ores from January to May dropped by 32.8% to 5.5074 million tons compared with the same period last year, and the normal export volume gradually returned to normal in June. At present, the blockade only covers the capital Manila and the surrounding four provinces, excluding the main mining areas, and the epidemic prevention work in the mining area has not been relaxed, so the possibility of re-emergence of the early large-scale blockade of the mining area is very low.

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