Phillippines eyes bigger share of China nickel market

Market: Metals
27/11/19

The Philippines has ramped up nickel ore exports to China this year as it seeks a bigger market share in the country ahead of Indonesia's export ban in 2020.

Nickel ore exports from the Philippines to China grew by 19pc year on year to 22.3mn t in January-August this year, trade data show.

The Philippines Nickel Industry Association (PNIA) is also projecting higher nickel production next year to make up for the potential shortfall in supply because of Indonesia's export ban.

In September, the Indonesian government announced that it will bring forward the nickel ore ban by two years to January 2020.

Indonesia, the world's largest nickel ore producer, exported 20.72mn t of nickel ore and ferro-nickel last year. The majority of this, 19.9mn t, was delivered to China to feed the country's stainless steel industry.

The Philippines is the world's second-largest nickel ore producer after Indonesia, and has been keen to capitalise on the opportunity provided by Indonesia's export ban next year, to increase its share of China's growing demand for nickel in the electric vehicle sector.

In a move that reflects the Philippines' growing ambition, PNIA signed a memorandum of understand (MOU) with the Power Battery Application Committee of China Industrial Association of Power Sources in November. The MOU will enable member companies of the two associations to collaborate or form joint-ventures.

Nickel is a key raw material in the lithium-ion battery that powers electric vehicles. Argus' price for nickel sulphate min 22% was assessed at Yn28,000-34,000/t ($3,983-$4,837/t) on 22 November.

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