Philippine Laterite Nickel Ore Exports in Q2 2024: Dominated by the Chinese Market? [SMM Analysis]

In Q2 2024, the Philippine laterite nickel ore export market exhibited significant changes and trends, worthy of in-depth analysis and attention.

In Q2, the Philippines completed the shipment of bulk nickel ore and demonstrated a clear export structure, especially in terms of the flow and market demand for different grades of nickel ore.

1. Significant Increase in Exports

In Q2, the Philippines experienced a significant increase in nickel ore exports. In particular, in April, the Philippines completed the loading of over 80 ships, with a very high proportion of low-nickel sources. The exports in May further increased, achieving the export of over 100 ships. This growth trend not only highlighted the Philippines' increasingly important position in the global nickel ore supply chain but also reflected the sustained demand for laterite nickel ore in the international market.

2. Dominance of the Chinese Market

China remained the main importer of Philippine laterite nickel ore. In April, nearly 80 ships of nickel ore were shipped to China, and this number increased to 106 ships in May. It is noteworthy that the demand for low-nickel high-iron nickel ore in the Chinese market remained relatively stable, with a significant portion being used as a supplement for iron ore downstream. The demand for medium-grade laterite nickel ore was affected by fluctuations in domestic NPI prices, leading to a generally weak purchasing intention.

3. Emerging Markets and Diversification Trends

Besides the Chinese market, the Philippines' nickel ore exports were gradually diversifying. In April, a small portion of laterite nickel ore was shipped to the Indonesian market, and in May, this expanded to more destination regions. Additionally, there was a certain volume of Philippine laterite nickel ore supplied to regions other than Indonesia and China, which indicates that the Philippines is continuously exploring and expanding new markets.

4. Participation of New Mines

The participation of new mines was also a highlight in Q2, with some already successfully starting to supply nickel ore to the market. The addition of these new mines not only increased the overall supply capacity of the Philippines but also brought new grades and quality options to the market.

5. Weather Impact and Dynamic Adjustments

It is worth noting that weather conditions had some impact on the loading and sailing of nickel ore. Especially since June this year, frequent rainfall in the Philippines led to a noticeable decline in the weekly loading and shipping rate of laterite nickel ore. This necessitated dynamic adjustments in the dispatch and sailing schedules of ships at ports. Despite this, the Philippines was still able to ensure that most ships completed loading successfully and only a few experienced slight delays in sailing.

Summary and Analysis

Overall, the flow of Philippine laterite nickel ore in Q2 2024 showed significant growth and diversification trends. The continued dominance of the Chinese market, the gradual exploration of emerging markets, and the participation of new mines brought new opportunities and challenges to the Philippine nickel ore industry. At the same time, the impact of external factors such as weather called for flexible response measures. Looking ahead, as one of the world's important nickel ore suppliers, the Philippines will continue to optimize its supply chain while meeting the diverse demands of the global market.