China witnessed a significant decline in its imports of ferro-nickel (FeNi) and mixed hydroxide precipitate (MHP) in August, largely due to typhoon-related shipping delays. However, the country saw a sharp increase in nickel matte imports, attributed to a growing supply of low-nickel matte.
Indonesia Drives Nickel Supply Surge Despite Disruptions
In August, China imported 522,315 metric tons of ferro-nickel, marking a drop of 36% year-on-year and 43% month-on-month. While other major suppliers like New Caledonia, Brazil, and Colombia saw increases, these were overshadowed by the sharper reduction in imports from Indonesia, China's largest nickel provider. Indonesia supplied 95% of China’s nickel pig iron (NPI), 90% of its nickel matte, and 80% of its MHP in August.
Indonesia's expanding stainless steel production, fueled by lower costs, has boosted demand for NPI and led to increased exports to new markets, including India, South Korea, Italy, and Germany.
Nickel matte imports, on the other hand, surged by 25% month-on-month and 72% year-on-year, totaling 68,227 metric tons. Much of this increase is believed to stem from imports of low-nickel matte, which contains around 20% nickel, compared to the more common high-nickel matte with a 70% nickel content. The low-nickel matte is processed into high-nickel matte in China for the production of nickel sulfate or nickel cathodes.
Russia also saw a notable rise in nickel matte exports to China, reaching 5,155 metric tons in August—an 18% increase year-on-year and doubling from the previous month.
Mixed hydroxide precipitate (MHP) imports fell by 11% month-on-month to 122,272 metric tons, primarily due to a 15% drop in shipments from Indonesia. However, imports still showed an 11% year-on-year increase, driven by the Lygend project ramp-up.
Tags
ALLOY
