SMM May 15 News:
Philippine nickel ore: Today, the prices of Philippine laterite nickel ore dropped slightly. The CIF price of Philippine laterite nickel ore with NI1.3% content was $43.5-45/wmt today, unchanged from the previous working day. The FOB price was $32-35/wmt, also unchanged from the previous working day. The CIF price of ore with NI1.5% content was $59-60/wmt, down by $0.5/wmt from the previous working day, while the FOB price was $47-50/wmt, unchanged from the previous working day.
In terms of supply and demand, on the supply side, although there was precipitation at major nickel ore loading points in the Philippines, with heavier rainfall in areas such as Sta Cruz, Eastern Davao, and Tawi Tawi, the rainfall in Surigao decreased compared to previous weeks. Overall, with the decrease in rainfall in Surigao, the supply of Philippine nickel ore is expected to increase. On the demand side, as the downstream NPI prices continued to decline and the inversion margin deepened, the sentiment of domestic NPI smelters for raw material procurement was dampened, and the support for nickel ore prices from the demand side continued to weaken. 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% content (delivery-to-factory price) was $23-25/wmt, down by $2/wmt WoW. The SMM Indonesia's local laterite nickel ore with 1.6% content (delivery-to-factory price) was $52.6-56.6/wmt, up by $1/wmt WoW.
For ore used for pyrometallurgy, the supply in Sulawesi is still being disrupted by continuous rainfall. Meanwhile, Halmahera Island entered the rainy season in May. Overall, the supply of Indonesian nickel ore remains relatively tight due to weather impacts. In addition, the PNBP policy has been officially implemented, leading to an increase in the sales cost of nickel ore. Furthermore, some Indonesian mines have had their mining activities under IUP licenses restricted due to not yet obtaining RKAB quotas, further exacerbating the tight supply situation. On the demand side, as NPI prices continue to decline, the costs of Indonesian pyrometallurgical smelters have been breached, limiting their acceptance of further increases in nickel ore prices. Overall, the prices of Indonesian nickel ore are currently influenced by both bullish and bearish factors. Although there are many disruptive factors on the supply side, dragged down by the downstream sector, prices are unlikely to see significant increases in the short term. For ore used for hydrometallurgy, there is currently no obvious tightening trend on the supply side. However, the MHP production in April was affected by the accident at the MHP project in the MOROWALI Industrial Park, leading to a decrease in the local demand for ore used for hydrometallurgy in Indonesia. Overall, the prices of ore used for hydrometallurgy have weakened. The relevant production lines in the park are expected to resume production in May. SMM expects that the prices of ore used for hydrometallurgy may be more likely to rise than fall in the future.
