【SMM Nickel Ore Daily Review】Overseas mine prices for Philippine nickel ore ease, while tight supply of {{Indonesia's local ore}} persists

SMM May 8:

Philippine nickel ore: Today, the offer prices of Philippine laterite nickel ore mines have loosened, with FOB prices of medium- and high-grade nickel ore declining. Today, the CIF price of Philippine laterite nickel ore with NI1.3% stands at $43.5-45/wmt, down by $0.25/wmt, while the FOB price of NI1.3% is $32-35/wmt, down by $1.5/wmt. The CIF price of NI1.5% is $59-60/wmt, down by $1/wmt, and the FOB price of NI1.5% is $47-50/wmt, down by $2.5/wmt.

In terms of supply and demand, on the supply side, although there has been precipitation at major nickel ore loading points in the Philippines, affecting nickel ore transportation, with the main mining areas in the south entering the dry season, the supply of Philippine nickel ore is still expected to increase. On the demand side, as the tender prices of downstream NPI have hit new lows and the inversion has deepened, the sentiment of domestic NPI smelters towards raw material procurement has been dampened, and the support for nickel ore prices from the demand side has weakened. Looking ahead, the domestic transaction prices of Philippine nickel ore may be dragged down by the downstream sector and operate under pressure.

Indonesia's local laterite nickel ore: This week, the SMM Indonesia's local laterite nickel ore with 1.3% (delivery-to-factory price) stands at $25.5-26.6/wmt, while the SMM Indonesia's local laterite nickel ore with 1.6% (delivery-to-factory price) stands at $52.6-54.6/wmt.

Regarding the prices of ore used for pyrometallurgy, although the HPM price in May has dropped slightly, the mainstream premium on Sulawesi Island in May has risen to $26-28/wmt, and the absolute price of ore used for pyrometallurgy has still increased. For ore used for hydrometallurgy, affected by the decrease in the production schedule of Indonesian MHP in April, downstream smelters have attempted to push down the prices of ore used for hydrometallurgy. After the Labour Day holiday, the FOB price of NI1.3% has dropped to $17/wmt, down by approximately $2/wmt. Looking ahead, although the rainy season in Sulawesi has improved, it is still ongoing, and May also marks the start of the rainy season in Halmahera Island. Continuous rainfall has affected the shipments of mines, deepening their willingness to stand firm on quotes. Meanwhile, the raw material inventory of downstream smelters is insufficient, and there is a strong demand for just-in-time procurement. Coupled with the decrease in the HPM benchmark price in May and the implementation of the PNBP policy at the end of April, the price of ore used for pyrometallurgy has risen slightly, putting downstream NPI enterprises in a dilemma. In the short term, the profit margins of hydrometallurgy enterprises may expand again.

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