China’s imported nickel concs port stocks finally rise
By Zhiyao Li
After declining for twelve successive survey weeks, stocks of imported nickel concentrates at China’s 15 ports under Mysteel’s weekly survey finally rebounded to 9.7 million tonnes as of May 22 from a 23-month low, rising by 349,600 tonnes or 4.7% on week, Mysteel’s database showed. The increase was mainly due to the gradual resumption of ore production and shipping from the Philippines from the beginning of May, market sources said on Tuesday.
Within the total, nickel concentrates from the Philippines, now the major nickel ore supplier to China after Indonesia banned exports in January, totalled 7.5 million tonnes, reversed up by 6.4% on week, after falling for 13 weeks. Those from Indonesia declined by another 4.8% on week to total 2.09 million tonnes.
From May 1, the Philippines gradually eased restrictions on mining and shipments, with exports from the Surigao region in South Philippines having almost returned to the same level as this time last year, a Shanghai-based market insider said. “Already, the nickel miners have almost sold all of their June shipments to China and some have started to negotiate for July shipments,” she said.
However, supplies of mainstream medium- and high- grade imported nickel concentrates are still short in China amid the high demand from domestic nickel pig iron (NPI) smelters, she noted, saying the shortage had driven prices higher.
The price for Philippine-origin nickel concentrates with 1.5% content at Lianyungang port in East China’s Jiangsu province continued to increase over May 18-22 to refresh a seven-month high of Yuan 369/tonne ($51.7/t) including the 13% VAT as of May 22, according to Mysteel’s database, higher by another Yuan 4/t or 1.1% on week.
In China, NPI prices also rose further last week, with those for 8-12% content NPI in Jiangsu breaking through four digits to reach Yuan 1,010/t including the delivery and the VAT as of May 22, a near five-month high and gaining by another Yuan 20/t or 2% on week, Mysteel’s database showed.
This increase was mainly a consequence of the robust demand from domestic stainless mills when supplies of NPI from smelters were low, the producers having reduced or halted production given low prices of NPI earlier, the Shanghai source noted. The prices also rose because of the higher costs for making NPI, Mysteel Global understands.
Source: Mysteel Global