September Surge in Ferro-Nickel Imports
China’s ferro-nickel imports saw a significant rebound in September 2024, rising by 41% month-on-month to reach 737,358 tons, marking a 13% increase compared to the same period last year. This surge was primarily fueled by a substantial rise in shipments from Indonesia and strong demand from China’s stainless steel sector, which has seen increased consumption of ferro-nickel due to industrial growth.
Indonesian Supply Boosts Imports
The bulk of the recovery in ferro-nickel imports can be attributed to Indonesia’s increased production capacity, which nearly doubled its shipments in September. Indonesian shipments totaled 715,030 tons, thanks to the ramp-up of production from new facilities, particularly:
- Nadesico Nickel Industry (NNI): A joint venture between Delong and CNGR, located in Morowali, Central Sulawesi. NNI has activated six of its eight rotary kiln electric furnaces (RKEF), with a total production capacity of 80,000 tons per year in nickel metal equivalent. Although the plant is primarily focused on low-grade nickel matte, it has the flexibility to shift to ferro-nickel production based on market demand.
- Shuoshi: Operating 12 RKEF lines in Morowali’s Huabao Industrial Park, Shuoshi, a subsidiary of China’s Zhenshi Group, has a capacity of 120,000 tons per year in nickel metal equivalent, making it a significant player in Indonesia’s ferro-nickel output.
Year-to-Date Trends and Challenges
From January to September 2024, China’s total ferro-nickel imports reached 6.41 million tons, up 6% compared to the same period in 2023. While growth has been positive, it has slowed significantly from the 46% surge recorded in 2023. The slowdown is attributed to a few key factors:
- Regulatory Limitations in Indonesia: Indonesia’s regulatory restrictions on pyrometallurgical processes have limited the country’s ability to scale up ferro-nickel production as rapidly as in previous years.
- Stainless Steel Demand Deceleration: Demand from China’s stainless steel sector, a major consumer of ferro-nickel, has faced some slowdown. The steel industry’s growth has moderated, reducing the overall demand for ferro-nickel in 2024.
Outlook: Stable Production and Potential for Continued Growth
The September rebound in ferro-nickel imports indicates the resilience of China’s ferro-nickel market, supported by a stabilizing supply from Indonesia and consistent demand from the stainless steel sector. Looking ahead, Indonesia’s growing production capacity, alongside the potential for further demand from China’s stainless steel industry, suggests that China’s ferro-nickel imports may continue to see steady growth in the coming months.
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