[SMM Analysis] Will Stable Nickel Ore Prices See New Fluctuations Later This Month?

SMM, December 4th:

This week, the global nickel ore market remained generally stable, with slight differences in market performance between major producing countries, the Philippines and Indonesia, drawing widespread attention within the industry.

In the Philippines, nickel ore prices overall remained stable. A new round of bidding in the northern Zambales region attracted significant market attention. Currently, bidding for medium-grade nickel ore in this region shows relatively limited trading volume. Specifically, the FOB price for nickel ore with a grade of 1.3% remains steady at $29/wmt, showing no significant change from previous levels. However, with the continued decline in high-grade NPI prices in China, nickel ore prices are facing further downward pressure. Although Chinese smelters have the intention to restock, they are constrained by high costs and are seeking lower procurement prices. Against this backdrop, it is expected that Philippine laterite nickel ore may experience slight price fluctuations in the future.

Meanwhile, Indonesia's laterite nickel ore market continued to operate steadily. Domestic trade prices remained stable, with mainstream premiums holding at $15-17/wmt. Although there were rumors that premiums might drop to $13-14/wmt, such adjustments are unlikely to materialize on a large scale in the short term. Notably, news from Indonesia's Ministry of Energy and Mineral Resources about plans to further restrict nickel product production to boost commodity prices and protect domestic industry interests spread across the market this week. Although specific policies have yet to be announced, the market generally believes this will provide support for Indonesian laterite nickel ore prices, with relatively small price fluctuations expected in the short term. Consequently, under such risk expectations, downstream restocking enthusiasm remains relatively strong.

Looking ahead, the global nickel ore market will face multiple influencing factors, including policy changes, international market demand, and dynamics in producing countries. This poses higher requirements for stakeholders to effectively respond to market changes. In this market context, relevant enterprises need to closely monitor international market trends and policy developments, adjusting their strategies in a timely manner to address potential challenges and opportunities in the future.