MHP, nickel sulphate drive Indonesia Ni export growth

: Metals
24/08/07

Indonesian nickel exports rose sharply on the year in the first half of 2024, because of increased production capacity for mixed hydroxide precipitate (MHP) and nickel sulphate, according to research undertaken by Australian bank Macquarie.

Indonesia's total nickel exports amounted to 805,000t during January-June, a year-on-year rise of 20.7pc. Total exports inclusive of stainless steel rose by 22pc on the year to 998,000t.

The country's four operating high-pressure acid leach plants exported a combined 139,000t of nickel metal in MHP and nickel sulphate during January-June, a year-on-year rise of 106pc. Second-quarter exports alone were at 81,000t, Macquarie said.

Nickel sulphate exports grew from 5,400t in the first half of 2023 to 85,400t this year, equivalent to 19,000t in nickel metal. Exports of nickel in MHP grew by 80pc on the year to 120,000t, Macquarie said.

Growth in exports of nickel pig iron (NPI), the biggest product by exported volumes, grew by 13pc on the year in January-June, to 544,000t. Weak NPI export growth relative to that of MHP and nickel sulphate is indicative of Indonesia's rising prominence in the battery materials sector.

Indonesia's high-grade matte exports declined year on year, as more supply was absorbed domestically in the production of nickel metal. Total high-grade matte exports declined by 17.8pc to 101,000t, according to Macquarie.

Nickel ore exports increased across the second quarter, according to Macquarie's data, indicating a continuing tightness in domestic supply even as the government accelerated its approval of mining quotas. Indonesia imported 900,000 wet metric tonnes (wmt) of nickel ore from the Philippines in June, up from 200,000wmt in March and zero in January-February.

NPI exports to China declined over the first half of the year, according to Macquarie. China's share of Indonesian NPI exports fell to 74pc in June, the lowest since the first quarter of 2022. Instead, more NPI is flowing from Indonesia to India and Europe because of the cost benefits it provides, Macquarie said.

Indonesian stainless steel melt production was up by 25pc year on year during January-June, a turnaround from 2022 and 2023 when production contracted by 4pc and 9pc, respectively, Macquarie's data show.

By Raghav Jain

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24/12/20

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Viewpoint: PGM demand from hydrogen sector to rise

24/12/20

Viewpoint: PGM demand from hydrogen sector to rise

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US Congress passes waterways bill

24/12/19

US Congress passes waterways bill

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Q&A: Xcelsior aims to derisk minor metals investment

24/12/19

Q&A: Xcelsior aims to derisk minor metals investment

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EU HRC imports drop a quarter on safeguards, AD probe

24/12/19

EU HRC imports drop a quarter on safeguards, AD probe

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