[Nickel Ore Market Weekly Review] SMM Indonesian Laterite Nickel Ore FOB Prices to See a Slight Decline, Premiums and Discounts Temporarily Stable

The Domestic Philippine Nickel Ore Market Remained Sluggish Prices Likely to Stay Stable

During the week, Philippine laterite nickel ore prices remained stable. Shipments of low-nickel high-iron nickel ore for the year have concluded, with no transactions in the market. Mid- to high-grade nickel ore saw a standoff between upstream and downstream players this week, with prices holding steady. Supply side, some mines in the Philippines suspended operations for holidays, and shipments from major production areas in the Philippines were at low levels this month, leading to an overall reduction in supply. Traders showed strong sentiment to stand firm on quotes. Demand side, high-grade NPI prices remained stable at low levels, and domestic pig iron plants primarily made just-in-time procurement. Regarding ocean freight rates, after last week's decline due to reduced shipping pressure and the shift of loading locations to the north, this week, ocean freight rates remained stable. Looking ahead, Philippine nickel oreFOBprices are expected to remain generally stable.

Indonesian Domestic Trade Laterite Nickel OreHPMDeclined Market Awaits Policy Signals

From the perspective of market transactions: This month, the mainstream transaction premium for Indonesian domestic trade laterite nickel ore remained in the range of15USD/wmt to17USD/wmt, with no significant changes observed. On the demand side, local smelting enterprises in Indonesia still held raw material inventories sufficient for approximately2months, showing low enthusiasm for purchasing high-priced nickel ore. Regarding price trends: As the year-end approaches, theJanuarySMMIndonesian Laterite Nickel OreFOBprice is expected to see a slight decline, with premiums and discounts temporarily stable. However, the Indonesian Ministry of Energy and Mineral Resources' statement on large-scale reductions in nickel quotas has not confirmed the claim that next year's nickel ore production quota will be reduced to1.5billion wmt. It only mentioned that mines must first pass theRKABreview. Currently, sentiment of market observation is spreading, and premiums for Indonesian domestic trade laterite nickel ore have stabilized after stopping their decline. Looking ahead toJanuary, although the monthly benchmark price may decline, policies could have a significant impact on premium prices.

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