In March 2025, the national refined nickel production increased by 22.32% MoM and 39.12% YoY. The industry operating rate was 65%, up 11% MoM. With the increase in production days in March, the operating rate of enterprises improved, leading to supply growth.
In terms of prices, nickel prices showed a sideways movement in March but exhibited an upward trend compared to February. In the short term, Indonesian ore prices remained strong, mainly due to the following reasons: (1) the rainy season in Indonesia had not yet completely ended, leading to tight supply; (2) the PNBP policy in Indonesia boosted sentiment. Under tight supply and demand, ore prices continued to rise in March, further driving up the cost of nickel. Overall, nickel prices recently received strong cost support and still have some room for upward movement.
In March 2025, the national refined nickel production increased by 22.32% MoM and 39.12% YoY. Meanwhile, the operating rate of enterprises generally rose in March. However, demand recovery was slow, and with the sharp fluctuations in nickel prices, many enterprises chose to wait and see. On the supply side, some enterprises achieved production increases or officially launched new projects in March, and the overall industry supply remained at a high level. As of March 28, the cumulative inventory in six SMM locations reached 47,423 mt, and the fundamentals still showed a supply and demand surplus.
In April, continue to monitor the recovery of demand. Under the supply and demand surplus, production is expected to increase by 0.40% MoM and 41.10% YoY in April.
