China's Ferro-Nickel Imports Surge in September, Bolstered by Indonesian Supply and Stainless Steel Demand

China's Ferro-Nickel

China’s ferro-nickel imports saw a robust recovery in September 2024, fueled by delayed shipments from Indonesia and heightened demand from the domestic stainless steel industry. Imports totaled 737,358 tons, representing a 41% increase from August and a 13% year-on-year rise.

Indonesian Supply Drives Recovery

Shipments from Indonesia nearly doubled month-on-month to 715,030 tons, thanks to increased production from new capacities, including Nadesico Nickel Industry (NNI) and Shuoshi. These facilities have significantly ramped up their operations, contributing to the surge in supply.

• Nadesico Nickel Industry (NNI): A collaboration between Delong, a leading nickel and stainless steel producer, and CNGR, a major Chinese battery material producer. Located in north Morowali, central Sulawesi, NNI has activated six of its planned eight rotary kiln electric furnaces (RKEF), with a production capacity of 80,000 tons per year in nickel metal equivalent. While primarily producing low-grade nickel matte, NNI can switch to ferro-nickel production based on market conditions.

• Shuoshi: A subsidiary of China’s Zhenshi Group, Shuoshi operates 12 RKEF lines in the Huabao Industrial Park, also in Morowali. With a capacity of 120,000 tons per year in nickel metal equivalent, Shuoshi is a significant contributor to Indonesia’s ferro-nickel output.

Year-to-Date Import Trends

From January to September 2024, China’s total ferro-nickel imports reached 6.41 million tons, a 6% increase compared to the same period in 2023. However, this growth is markedly slower than the 46% surge recorded in the previous year, reflecting a combination of factors:

1. Indonesian Restrictions: Indonesia’s regulatory limitations on pyrometallurgy process capacities have constrained supply growth.
2. Stainless Steel Demand Slowdown: China’s stainless steel sector, a key consumer of ferro-nickel, has faced a deceleration in growth, impacting import volumes.

Outlook

The revival of imports in September highlights the resilience of China’s ferro-nickel market amid fluctuating global dynamics. With new production capacities in Indonesia stabilizing, and the potential for further demand from the stainless steel sector, the coming months will determine whether this upward trend can sustain itself.