China’s FeNi and MHP Imports Decline in August, but Nickel Matte Surges

FeNi

China experienced a decline in Ferro-Nickel (FeNi) and mixed hydroxide precipitate (MHP) imports during August, largely due to shipment delays caused by typhoons. Despite this, the country saw a rise in nickel matte imports, reflecting increased availability of matte with lower nickel content.

Indonesia's Role in Nickel Supply Dominates

In August, China imported 522,315 metric tons of ferro-nickel, marking a significant 36% drop compared to the same period last year and a 43% decline from July. Although imports from other suppliers like New Caledonia, Brazil, and Colombia rose, the drop from Indonesia, China’s largest supplier, was much steeper.

Indonesia continues to dominate China’s nickel supply, providing 95% of nickel pig iron (NPI), 90% of nickel matte, and 80% of MHP imports. Indonesia’s expanding stainless steel output, driven by lower production costs, boosted NPI exports to markets like India, South Korea, Italy, and Germany, further emphasizing Indonesia’s role in the global nickel supply chain.

China’s nickel matte imports surged in August, increasing by 25% from the previous month and by 72% on the year. Much of this rise is attributed to low-nickel matte imports, which have a nickel content of around 20%, compared to high-nickel matte with about 70% nickel content. Low-nickel matte is processed in China to produce higher-value nickel sulphate or nickel cathode.

Imports of nickel matte from Russia also saw notable growth, reaching 5,155 metric tons in August—a year-on-year increase of 18% and a doubling of imports from the previous month.

MHP Imports Drop Despite Lygend Project Growth

Mixed hydroxide precipitate (MHP) imports dropped by 11% compared to July, totaling 122,272 metric tons in August. This decline was driven by a 15% decrease in Indonesian arrivals, despite an 11% year-on-year rise fueled by the ramp-up of Indonesia’s Lygend project. Market participants are closely watching how these developments will shape future trends in China’s nickel imports.