As The Country’s Supply Become Limited, Indonesian Nickel Smelters Go To The Philippines For Ore

Top nickel smelters People familiar with the subject stated that Indonesia is making unusual purchases of ore from the Philippines to relieve supply constraints, upending raw material trade patterns and driving up costs across the supply chain.

While mining at other sites carries on and Indonesia has stated that there is no lack of ore, prices have climbed approximately 8% this week, following a 10% increase a week earlier, according to local purchasers.

Some companies now buy ore from the neighboring Philippines, the world’s second major supplier, in case new mining quotas are delayed further, according to three smelter managers, two nickel merchants, and a Chinese analyst.

According to the source, Indonesian miners will prioritize high-grade ore due to limited output permits.

According to Indonesian trade data, the country imported 53,864 metric tons of nickel ore in the first half of 2023, up from 22,503 tons in the entire year of 2022.

However, imports from the Philippines just began in May, and all arrived at Morowali port in a massive nickel processing facility managed in part by Chinese nickel giant Tsingshan Group, according to Indonesian data.

In accordance with Mysteel, imports from the Philippines may reach 100,000 tons in July and August due to supply constraints.

Conforming to INSG, the Philippines extracted 360,000 tons of nickel ore in 2022, accounting for 11% of global supplies.

Philippines 1.3% grade ore landed at China’s Lianyun port increased 20.6% in the last month to $41 per ton, the highest since March, according to Mysteel statistics.