China’s demand for ferronickel import, especially low grade ferronickel, is expected to remain strong in February-March of this year assuming that the Chinese government will revoke its dual energy consumption policy, PT Indeks Komoditas Indonesia (IKI) said in its latest Indonesia Nickel Report (INR).
The report said that amid declining inventories, South Korea is also expected to increase import of lower grade ferronickel in the first quarter of this year with the assumption of increase in demand for stainless steel and lower supply of nickel ore.
The report said that while Indonesia’s ferronickel export in the first eleven months of last year increased, export volume in November declined from October due to weaker demand from China.
Meanwhile, Indonesia’s nickel matte export in November decreased by 4.57 percent to 6.74 Kt, month-on-month, due to lower demand from Japan and repair work of PT Vale Indonesia Tbk’s furnace No 4.
Total nickel matte export until end of November 2021 was 74.93 Kt or decreased by 12.36 percent y-o-y.
Indonesia’s NPI export in January-November 2021 fell by 78.4 percent y-o-y due to lower demand from China. IKI predicts export of NPI in February 2022 will increase as the high nickel price in the global market may cause Chinese industries to import more NPI to reduce cost. (To subscribe to the Indonesia Coal Report, please contact Petromindo’s sales division)
