2009 March Ni Imports Data Analysis

SHANGHAI, Apr. 24 (SMM) --
Nickel Ore:
According to China Customs, nickel ore imports were 573,280 mt during March, down 55.05% YoY. Imports of laterite-nickel ore were 533,219 mt during March, with 409,743 mt from the Philippines, up 191.59% YoY, and 123,476 mt from Indonesia, down 88.29% YoY. Increases in imports from the Philippines were due mainly to the closely spaced arrivals of nickel ore in March, which were ordered previously at the end of the rainy season.  Declines in imports from Indonesia were due mainly to declines in demand for high-grade nickel ore due to continuous production cuts and suspensions at domestic submerged arc furnace enterprises.
Refined Nickel:
According to China Customs, refined nickel imports were 12,620mt during March, up 28.68% YoY. Output has increased significantly at domestic steel mills during 1Q compared to 4Q 2008, and the domestic/LME nickel price ratio remained high. In this context, although various factors indicate demand for nickel has improved, producers still prefer to purchase the cheapest raw materials, so imported nickel will have no price advantages and would not necessarily be the first choice for mills. Imported ferronickel will make up a large part of market shares in March due to the current high domestic/LME price ratio, but domestic nickel and ferronickel will also contribute. In this context, refined nickel imports in March were not as high as market expectations, and the upward momentum for demand of refined nickel weakened due to ample nickel supply.

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