According to customs data, in June, China's NPI+ FeNi imports reached 694,100 mt, up 6.5% MoM and 15.1% YoY. The metal content amounted to 96,000 mt, up 5.9% MoM and 15.5% YoY.
The main increase in imports was concentrated in NPI. NPI imports were 661,200 mt in June, up 6.3% MoM and 15.4% YoY. In June, the Indonesian nickel ore RKAB approval progress slowed down, and the shortage of nickel ore at smelters was alleviated by external procurement of Philippine nickel ore. Meanwhile, the rising premium led to higher costs for smelters compared to May. The price of NPI in June fluctuated downward due to the mismatch between supply and demand in the downstream stainless steel market, resulting in narrower profits for Indonesian NPI smelters. In addition, with the conversion of some RKEF production lines to nickel matte ones driven by profits, the overall increase in NPI production was limited. The demand from countries and regions such as India, China Taiwan, and South Korea remained stable, leading to a slight increase in Indonesian NPI exports to China. According to SMM, Indonesian NPI production in July is expected to decline due to continued disruptions in nickel ore supply. As nickel ore approval slows down, less NPI will be qualified for exports, leading to a decrease in Indonesian NPI exports to China in July.
FeNi imports in June were 32,900 mt, up 11.2% MoM and 10.9% YoY. The metal content was 7,400 mt, up 1.1% MoM and 17.7% YoY. In June, imports from Colombia, New Caledonia, Brazil, and South Korea grew steadily, those from North Macedonia resumed, while those from the Dominican Republic decreased. The current domestic FeNi spot resources mainly come from South32, Antam, Glencore, POSCO, and Anglo American. In May, geopolitical conflicts broke out in New Caledonia. It is understood that Konianbo and Doniambo in New Caledonia maintained low operating rates, with part of the steady growth in China's imports coming from previous local inventories. Imports from Brazil currently rely on Anglo American, while another major producer, Vale, resumed production in Q2, with the first batch of goods shipped in June and expected to be exported into China by August. The current domestic FeNi resources remain at a low level. FeNi imports are expected to maintain steady growth in July.
