SMM Analysis of China Nickel Ore Import Data in January-February

SHANGHAI, Apr 3 (SMM) – Customs data showed that China imported 2.249 million mt of nickel ore in January-February, down 22.6% YoY with the amount in February up 19.2% MoM and down 17.5% YoY. The decline in nickel ore import is basically in line with SMM expectations. During February, the Surigao area, as a main Philippine nickel ore zone, was still in the winter rainy season, so the arrival volume was at a low level. And nickel ore inventory at Chinese ports presented a downward trend, in line with the low-level import expectation. The 17.5% YoY decline in February is mainly influenced by the unsmooth approval of RKAB, resulting in a shortage of nickel ore for Indonesian smelters, which led some companies to source ore from the Philippines. Secondly, domestic smelters were suffering loss throughout 2023, so the output of high-grade NPI declined last year and early this year, thus weakening demand for nickel ore. Nickel ore import is expected to remain low during March.