Indonesian nickel ore premium held stable and Philippine nickel ore transactions were active

Indonesian nickel ore premium held stable and Philippine nickel ore transactions were active

The shipping freight for Philippine laterite nickel ore shipped to China remained high last week, with that to Lianyungang at $11-14.5/wmt and to Tianjin port was $12-15/wmt. As Philippine laterite nickel ore shipments remained active and ocean freight showed no signs of a short-term decline, Philippine laterite nickel ore prices will barely fall.

Although domestic NPI prices recovered, NPI smelters showed no increased willingness to purchase. Some low-grade NPI smelters indicated that they had completed their stockpiling and had no clear purchasing intentions recently. It is expected that domestic laterite nickel ore sellers and buyers will be in a stalemate. The 1.6% grade Indonesian laterite nickel ore price was between $39.6-49.9/wmt (on a CIF basis), with an average price up $0.05/wmt. The overall price stayed steady. Although SMM indicated that there was a certain increase in Indonesian laterite nickel ore quotas, it still takes time to see a supply increase in laterite nickel ores. As Indonesian smelters purchased nickel ores domestically and from the Philippines, Indonesian laterite nickel ore prices are expected to barely drop.

On May 17, China’s nickel ore inventory at ports increased by 210,000 wmt WoW to 7.318 million wmt. The metal content totalled 55,874.8 mt. Among them, stocks in China’s seven major ports were 3.681 million wmt. Last week, shipments from the Philippines remained active, with over 70 ships heading to China as of last week. With a new round of arrivals this week, nickel ore stocks at ports may continue to rise.

Please do not hesitate to contact Jean at jeantang@smm.cn or 86-19946295759 if you have any question or inquiry.