SHANGHAI, Feb 9 (SMM) - Indonesian NPI output stood at 101,100 mt in nickel content in January, a month-on-month decrease of 2.41% but a year-on-year increase of 20.8%. In January, Qingdao Zhongzi Zhongcheng and Lygend’s PT Halmahera Jaya Feronikel (HJF) both yielded NPI from their new production lines. The scale of Indonesia's NPI industry has continued to expand as new production lines continued to increase, growing the output.
Besides, as the poor demand for nickel matte from nickel sulphate has diminished the profitability of the former, the producers’ motivation to shift to produce nickel matte has waned. They turned back to the production of NPI quickly, thus the output of NPI increased.
Yet, the production of NPI in Indonesia remained on the decline. The main reason is that one steel mill in Indonesia has significantly whittled down its stainless steel output and undertook maintenance at part of RKEF production lines. That affected the supply of NPI.
The production of NPI in Indonesia should continue to shrink in February 2023. Although the output of some manufacturers is expected to recover, the switch of production from NPI to nickel matte will limit the NPI output growth.
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