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

SMM July 24th News,

In Q2 2024, the export market for laterite nickel ore from the Philippines showed significant changes and trends, worthy of in-depth analysis and attention.

From April to June 2024, the international flow of laterite nickel ore from the Philippines exhibited notable changes and trends. In Q2, the Philippines completed the shipment of a large volume of 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 Export Volume
In Q2 2024, the export of nickel ore from the Philippines experienced a significant increase. In particular, in April, the Philippines completed the loading of over 80 ships, with a very high proportion of low-nickel cargo. In contrast, the export volume in May further increased, reaching over 100 ships. This growth trend not only highlights the Philippines' increasingly important position in the global nickel ore supply chain but also reflects the sustained demand for laterite nickel ore in the international market.

2. Dominance of the Chinese Market
China remains the main importer of laterite nickel ore from the Philippines. 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 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 in the market.

3. Emerging Markets and Diversification Trends
In addition to the Chinese market, the export of nickel ore from the Philippines is 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. Furthermore, there was a certain volume of laterite nickel ore supplied to regions other than Indonesia and China, indicating 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 have a certain impact on the loading and sailing of nickel ore. Especially since June this year, frequent rainfall in the Philippines has significantly reduced the loading and shipping rates of laterite nickel ore during some weeks. This necessitated dynamic adjustments in the dispatch and sailing schedules 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 Analysis
Overall, the flow of laterite nickel ore from the Philippines 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 have brought new opportunities and challenges to the Philippine nickel ore industry. At the same time, the impact of external factors such as weather calls 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.