SMM Data Analysis: Sluggish Market amid Weak Demand Led to a Limited Increase in Nickel Ore Imports

Published: Aug 22, 2022 16:26 (GMT+8)

Source: SMM

Save

The import volume of nickel ore from the Philippines was limited mainly because downstream stainless steel plants and NPI plants reduced the production due to losses amid a sluggish domestic market, resulting in shrinking demand for nickel ore.

SHANGHAI, Aug 22 (SMM) - According to customs data, China's imports of nickel ore totalled 4.3711 million mt (wmt and dmt mixed) in July 2022, up 1.4% MoM and down 15.7% YoY. The MoM increase in the imports was limited, and the supply of nickel ore in the spot market was tight as well. In addition, the total import of nickel ore from January to July 2022 amounted to only 19.51 million mt, far less than the estimate at the beginning of the year. Among the nickel ore imports in July, 3.8533 million mt of laterite nickel ore were imported from the Philippines, an increase of 8.3% month-on-month, and a decrease of 19.3% year-on-year. The import volume of nickel ore from the Philippines was limited mainly because downstream stainless steel plants and NPI plants reduced the production due to losses amid a sluggish domestic market, resulting in shrinking demand for nickel ore. At the same time, plants would rather accept low prices and even lowered the prices of low-grade nickel ore to near its costs. As a result, mines were also less reluctant to ship. In addition, the imports of Indonesia NPI not only squeezed the market share of domestic NPI, but also exerted greater pressure on the imports of the Philippine nickel ore. In July, the volume of laterite nickel ore imported from New Caledonia was relatively stable and stood at 240,600 mt, down 5.4% from the previous month. The import volume of sulphide ore was about 325,000 mt, a month-on-month decrease of 32.5% and a year-on-year decline of 74.7%. SMM expects that the increase in the import volume of laterite nickel ore will still be limited in the short term. Although the stockpiling in the Philippines will start soon with the rainy season approaching, the sluggish downstream demand for NPI and stainless steel will prevent the demand for nickel ore from growing significantly. Therefore the supply and demand of nickel ore are expected to maintain a tight balance in the coming rainy season.

Market Market Import/Export

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 Nickel Flash】Indonesia Nickel Ore Production Reaches 173.79 Million mt by September 1

Indonesia's nickel ore production reached 173.79 million mt as of September 1, 2026, according to data from the Energy and Mineral Resources Ministry (ESDM). Full-year nickel ore production stood at 320.37 million mt in 2025. Meanwhile, nickel-related non-tax revenue (PNBP) reached Rp21 trillion through August 31, more than double the Rp10 trillion recorded during the same period last year. ESDM said the government's focus is shifting toward optimising production in line with market demand, prices, logistics and reserve sustainability. The production data provides an indication of actual physical ore supply as Indonesia gradually releases additional 2026 mining quotas. With downstream nickel-processing capacity requiring substantially more ore, market attention remains focused on whether production and shipments can keep pace with smelter demand.

1 hour ago

2 hours ago

【SMM Nickel Flash】Indonesia Nickel Ore Market Remains Stable on September 29

On September 29, Indonesia's nickel ore market remained stable, with prices for major grades unchanged: 1.2% Ni: $26.5/wmt, unchanged 1.3% Ni: $28.5/wmt, unchanged 1.4% Ni: $51.8/wmt, unchanged 1.5% Ni: $58.5/wmt, unchanged 1.6% Ni: $63.4/wmt, unchanged Market sources said additional 2026 RKAB quotas are gradually being approved and released, although the total additional quota has yet to be officially announced. Market attention is increasingly shifting from quota approvals to actual mine production and nickel ore shipments.

2 hours ago

【SMM Nickel Flash】SCM Completes 60-km Dedicated Nickel Ore Haul Road Linking Konawe and Morowali

PT Sulawesi Cahaya Mineral (SCM) inaugurated a 60-km Main Hauling Road (MHR) on September 16, connecting its nickel mining area and stockpile in Konawe, Southeast Sulawesi, with nickel processing facilities in Morowali, Central Sulawesi. The dedicated route is designed for heavy vehicles and trucks transporting nickel ore and other mining materials, allowing SCM to conduct hauling operations through its own road network rather than relying on public roads. According to SCM's Head of Mining Engineering, ore will be transported from the company's Konawe mining operations to Morowali on a daily basis. The MHR was constructed in two stages. The first 20-km section was completed between 2021 and 2023, while construction of the remaining section began in late 2023 and was completed in September 2026. SCM said the completed route is expected to improve control, safety, efficiency and reliability in ore transportation between its mining and processing operations.

2 hours ago