- China’s cumulative NPI output increased 9.34%
- Indonesia’s NPI production increased 6.37% m-o-m
Nickel pig iron (NPI) production in China and Indonesia increased in August, led by a strong rebound in Indonesian output. However, cumulative production during January-August remained below year-ago levels, with Indonesia continuing to weigh on overall supply.
Indonesia drives August production rebound
Combined NPI production in China and Indonesia reached 174,500 tonnes in nickel metal content in August, up 4.52% m-o-m.
Medium- and high-grade NPI production stood at 168,300 tonnes, increasing 4.64% m-o-m.
Indonesia accounted for most of the monthly increase. Its NPI production reached 146,900 tonnes, up 6.37% m-o-m.
Mysteel’s survey covered 55 Indonesian nickel smelting projects, with a combined 264 operating BF, EF and RKEF lines. No new production lines were added during August.
China’s NPI production declines
China’s NPI production fell to 27,600 tonnes in August, down 4.35% m-o-m.
Medium- and high-grade NPI production declined 5.89% m-o-m to 21,400 tonnes, while low-grade NPI output increased 1.44% to 6,100 tonnes.
Cumulative production remains lower
Combined China and Indonesia NPI production during January-August stood at 1.295 million tonnes, down 7.28% y-o-y.
Indonesia’s cumulative production declined 9.80% y-o-y to 1.094 million tonnes, remaining the key drag on regional output.
In contrast, China’s January-August NPI production increased 9.34% y-o-y to 200,900 tonnes. Medium- and high-grade production rose 15.58% to 154,400 tonnes.
Indonesian wet intermediates remain weak
Indonesia’s wet nickel intermediate production also weakened in August.
Production from 10 surveyed projects stood at 36,400 tonnes in nickel metal content, down 3.06% m-o-m and 15.65% y-o-y.
Cumulative January-August production declined 8.18% y-o-y to 281,900 tonnes. September production is estimated at 35,200 tonnes, down 3.30% m-o-m and 15.85% y-o-y.
Nickel inventory trends remain mixed
As of 4 September, refined nickel inventories across 30 Chinese warehouses stood at 123,635 tonnes, down 1.52% w-o-w.
Warehouse receipt inventories declined by 2,168 tonnes to 99,303 tonnes.
Meanwhile, global nickel inventories increased 0.21% to 493,881 tonnes. LME inventories rose 0.90% to 270,768 tonnes.
Chinese nickel ore inventories edge lower
Nickel ore inventories at 14 major Chinese ports stood at around 12.39 million wet tonnes as of 3 September, down 0.36% w-o-w.
Philippine-origin material accounted for the majority of stocks, at around 11.74 million wet tonnes.
Note: This article is published as part of a content exchange agreement between SteelDaily and BigMint.
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