Clearance Volume of Pure Nickel Grow 11% MoM in September amid the Better Demand

SHANGHAI, Oct 25 (SMM) - According to customs data, China imported 9,859 mt of refined nickel (including unwrought non-alloy nickel with a total amount of nickel and cobalt ≥99.99% and cobalt ≤0.005%, and other unwrought non-alloy nickel) in September 2022, down 17.56% month-on-month (MoM) and 72.21% year-on-year (YoY). The imports of other unwrought alloy nickel accounted for 86.67%, or 8,545 mt, down 74% YoY. In addition, imports of unalloyed nickel powder and flake (75040010) in September were 3,119 mt, up 97.04% MoM and 108.84% YoY. The import volume of nickel briquettes stood at 3,106 mt in September 2022, up 38.15% MoM, but down 39% YoY. The major suppliers of pure nickel were Russia (3,363 mt), Australia (2,386 mt), Canada (811 mt), Madagascar, South Africa, etc.

The customs clearance volume was 13,684 mt, down 66% YoY, but up about 11% MoM, while the overall clearance volume remained relatively low.  The customs clearance volume in September was basically in line with expectations. In detail, the imports of nickel briquettes and nickel powder increased significantly by 38.15% MoM and 97.04% MoM respectively, driven by the growing nickel sulphate demand from the ternary precursors. According to SMM research, the nickel salt output is expected to grow further in October on the basis of the increase of 15% MoM in September. Although various domestic salt plants switched to produce intermediate products or high-grade nickel matte, the MHP acid-dissolving production still has capacity bottlenecks, so the rigid demand for nickel briquettes and nickel powder still existed. Besides, the bonded zone inventory of nickel briquettes in September dropped from 2,350 mt at the beginning of September to 1,650 mt at the end of the month. The output of 300-series stainless steel grew 23.84% month-on-month in September, and the production is still expected to increase in October. In October, due to the rebounded prices of nickel sulphate and stainless steel, the bonded zone inventory will continue to fall, so the customs clearance volume in October may increase slightly compared with that in September.