[Nickel Ore Market Weekly Review] Active Trading in Indonesian Domestic Trade Laterite Nickel Ore During the Week, Prices Fluctuate Upward

Philippine Offer Prices Rise Nickel Ore Prices Slightly Increase

During the week, Philippine prices remained stable and are expected to fluctuate upward in the future. Shipments of low-grade nickel ore with high iron content for the year have ended, with no transactions in the market. For medium- and high-grade nickel ore, mines in the Zambales region of the Philippines conducted tenders for medium-grade nickel ore this week. The 1.3 grade nickel ore FOB prices rose again. Supply side, Philippine mines gradually resumed offering small quantities after the holiday, and traders were active in bidding for mine tenders this week. Demand side, market sentiment for downstream NPI and stainless steel improved. High-grade NPI prices saw a slight correction, but domestic NPI plants mostly operated at losses, making it difficult for downstream buyers to accept high-priced nickel ore. Regarding ocean freight rates, Philippine shipping charter rates declined during the week, reducing shipping costs and slightly lowering freight prices. Overall, Philippine nickel ore prices are expected to fluctuate upward in the future.

Active Transactions in Indonesian Domestic Trade Nickel Ore Prices Fluctuate Upward

Supply side, Indonesia has approved RKAB permits for 207 companies, and most mines passed the SIMBARA system's MOMS review this week, with normal shipping and delivery. Demand side, the issuance of temporary quotas and reduced premiums in Q4 last year led to sufficient stockpiling by downstream smelters. Currently, nickel ore raw material inventories at local smelters remain above two weeks' levels. From a supply-demand perspective, Indonesian domestic trade nickel ore supply is relatively ample, with increased market circulation. Compared to the same period early last year, the looseness is particularly evident. Regarding market transactions during the week, both upstream and downstream negotiations were active, and market sentiment improved significantly YoY from the previous week. The mainstream transaction

premium for Indonesian medium- and high-grade nickel ore remained mostly concentrated at 15-17 USD. During the week, sales prices of Indonesian nickel smelting products, including NPI and intermediate products, saw a slight increase, and production profits for downstream smelters slightly improved. However, spot nickel ore supply remained relatively ample, and with smelters' raw material inventories still at safe levels, downstream smelters showed low acceptance of high-priced nickel ore. Looking ahead, some projects in Indonesia are expected to commence or ramp up production within the year, and the supply-demand balance for Indonesian nickel ore may gradually tighten during the year.

It is expected that in the second half of this month, Indonesian domestic trade nickel ore CIF prices will remain stable with an upward trend. Indonesian policy attitudes and the progress of temporary quota issuance will continue to have a significant impact on global nickel resource supply and nickel prices.

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