China's August Nickel Metal Imports Surge, Exports Drop

China's Nickel

China’s nickel metal imports saw a significant rebound in August, largely driven by delayed shipments from Russia in July finally arriving. The gap between Chinese domestic nickel prices and London Metal Exchange (LME) nickel prices narrowed, leading to a sharp reduction in nickel exports.

According to customs data, China imported 8,794 tonnes of nickel metal in August, more than doubling the volume from the previous month and marking a 28% increase from the same period last year. The dip in imports in July was mainly attributed to logistical challenges, which were resolved by August, resulting in the spike. Russian exports, which usually maintain a steady level each month, rose sharply in August to 5,242 tonnes, compared to just 946 tonnes in July.

Nickel imports from Indonesia remained stable in August, reaching 1,232 tonnes, reflecting a 13% month-on-month increase. Despite the August surge, China's total nickel imports for the January-August period fell by 15%, amounting to 54,713 tonnes. The decline was due to reduced shipments from Russia, Australia, and Canada, which outweighed the increase in Indonesian imports. Indonesia is increasingly becoming China’s main source of nickel feedstock, replacing traditional suppliers.

Exports Fall Amid Stable Domestic Supply

In contrast, China’s nickel metal exports dropped to 12,496 tonnes in August, a 17% decline from July. However, exports were nearly eight times higher than a year earlier. Taiwan remained the leading export destination due to its close proximity to an LME warehouse, making it a key hub for trade.

During the January-August period, China’s total nickel exports more than tripled, reaching 71,020 tonnes. South Korea also emerged as a major destination, accounting for 37% of China’s total exports, a position similar to Taiwan, driven by geographical convenience.