Resilient Growth in China’s Ferro-Nickel Market Backed by Indonesian Supply Boost
China’s ferro-nickel imports jumped sharply in September 2024, rising by 41% month-on-month to reach 737,358 tons. Compared to the same month last year, this marks a 13% year-on-year increase. This surge stems from increased shipments from Indonesia and sustained demand from China’s stainless steel industry. According to SuperMetalPrice, the September rebound signals renewed momentum in the ferro-nickel trade.
Indonesia’s Output Drives Import Recovery
Indonesia played a pivotal role in September’s import recovery, accounting for 715,030 tons—nearly the entire monthly total. This performance came as producers ramped up operations at new facilities.
Nadesico Nickel Industry (NNI), a joint venture between Delong and CNGR, activated six of its eight rotary kiln electric furnaces (RKEF) in Morowali, Central Sulawesi. Though designed for low-grade nickel matte, NNI’s facility has flexibility to produce ferro-nickel depending on market demand. With an annual capacity of 80,000 tons in nickel metal equivalent, it has added momentum to Indonesia’s supply chain.
Meanwhile, Shuoshi, a subsidiary of Zhenshi Group, operates 12 RKEF lines at Huabao Industrial Park. The plant’s 120,000-ton capacity positions it as a major contributor to Indonesia’s ferro-nickel output. These developments underscore Indonesia’s commitment to expanding its ferro-nickel production base.
Year-to-Date Growth Slows but Remains Positive
Between January and September 2024, China imported 6.41 million tons of ferro-nickel. This marks a 6% increase compared to the same period in 2023. However, the pace of growth has slowed sharply from the 46% surge seen last year.
Several factors contributed to the deceleration:
Regulatory restrictions in Indonesia: New limitations on pyrometallurgical processes have capped the pace of production growth.
Slower stainless steel demand: China’s stainless steel sector, the primary consumer of ferro-nickel, has experienced moderated growth in 2024, reducing overall consumption.
Despite the slower pace, China’s ferro-nickel market remains fundamentally strong, supported by stable industrial demand and reliable Indonesian supply.
Steady Outlook for Imports and Production
Looking forward, China’s ferro-nickel imports are expected to maintain steady momentum. Indonesia’s expanding production capacity and China’s consistent industrial demand provide a strong foundation. With further activation of furnace lines and investment in downstream facilities, both countries are well-positioned to benefit.
SuperMetalPrice will continue to monitor global ferro-nickel trends, especially as stainless steel output, environmental regulations, and Indonesian production policies shape the market’s trajectory in 2025.
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