Posted on 20 Mar 2025
Over the past month, China's prices for high-grade nickel pig iron (NPI) have increased no fewer than nine times, pushed higher by firm support from the nickel ore market and strong demand from stainless steelmakers. These sustained gains have finally returned domestic NPI smelters to profitability after four months of losses, Mysteel Global observed.
As of March 18, Mysteel assessed the price of 7-13% grade NPI in East China's Shandong province at Yuan 1,020/mtu ($140.9/mtu), including delivery and 13% VAT, marking a further Yuan 25/mtu increase from a week earlier.
According to Mysteel's assessment, a major NPI smelter in Shandong, affiliated with Taiyuan Iron & Steel Group (TISCO) – China's second-largest stainless steelmaker based in North China's Shaanxi province – recorded a profit of Yuan 23/mtu on March 18, compared with a Yuan 2/mtu loss on March 11.
This improved profitability was evident among both domestic and overseas NPI smelters. On March 14, the results of Mysteel's survey among 15 Indonesian NPI smelters (accounting for 90% of the country's NPI production capacity) showed that when converted into Yuan, their saw profits had risen to Yuan 196/mtu, up by Yuan 14/mtu from the previous week. The majority of Indonesian NPI is exported to China, Mysteel Global notes.
The rally in NPI prices has outpaced increases in nickel ore costs, providing stronger margins for smelters, market sources noted.
The recent upswing in Indonesian nickel ore prices has been primarily driven by disruptions resulting from Ramadan (over February 28–March 29) and Jakarta's proposed nickel tax rates, which have buoyed market sentiment, a Wuxi-based nickel analyst said.
Market optimism may receive a further boost after Indonesia's Ministry of Energy and Mineral Resources (ESDM) signalled on March 18 that the new regulation on higher mineral and coal (minerba) royalty rates will be issued before Eid or March 31, he added.
Meanwhile, Philippine nickel ore prices have also trended higher due to ongoing rain disruptions at Surigao Port, which continue to hamper shipments. As of March 18, Mysteel assessed the price of Philippines-origin 1.3% nickel content concentrate at $42/t CIF Lianyungang port in Jiangsu, up $1/t from the previous week.
Source:Mysteel Global
