Weak Supply and Demand Suppressed Imports of Laterite Nickel Ore in Nov

SHANGHAI, Dec 21 (SMM) - Customs data showed that China imported 4.17 million mt of nickel ore in November, down 12% month-on-month and up 4% year-on-year. The imports of nickel ore gradually shrank, and the port inventory declined slowly. Among them, imports of laterite nickel ore stood at 4.12 million mt in November, down 12.5% MoM, but up 4.2% YoY.

The nickel ore imports from the Philippines were 3.58 million wmt, down 10.6% from the previous month. The decline was due to the fact that the production of major mines in the southern part of the Philippines was restricted by the rainy season, which resulted in a significant decrease in ROM. Therefore, the imports were mainly contributed by mines in the north and in Palawan, who managed to make shipments by bidding. Generally speaking, the output of ROM was limited as the capacity of new mines was still ramping up. At the same time, the prices of high-grade NPI in China dropped from highs in November and neared the cost line. To contain losses, NPI plants put pressure on the prices of nickel ore. As a result, the market was in a stalemate, and the nickel ore imports could be hardly boosted. Moreover, NPI plants were increasingly reluctant to produce, some of whom planned to be closed for maintenance. The falling demand thus also led to the decline in nickel ore imports from Xinka and Guatemala. China imported 52,500 mt of nickel sulphide ore in November, up 43.9% MoM. The increase may be explained by the raw material stockpiling before the Chinese New Year. It is expected that the nickel ore imports in December will drop further as a result of falling imports of laterite nickel ore from the Philippines.