Philippines Market: Seasonal Downturn and Supply Constraints During the Chinese New Year holiday, nickel ore trading activity in the Philippines remained sluggish, with trading volume being scarce. This stagnation was primarily due to Chinese buyers being away during the holiday. Supply side, shipments are still concentrated in the northern regions, while shipments from Surigao and other southern areas remain at low levels. Although port inventory in China dropped slightly, smelter demand for Philippine ore remained weak during the holiday. This weak demand is attributed to the persistently high prices of Philippine nickel ore and the fact that many smelters built up sufficient inventory by the end of last year. Furthermore, the ongoing rainy season, which started in December, continues to impose supply constraints, providing steady upward pressure on prices. These high prices are further supported by increased market uncertainty regarding domestic supply from Indonesia in the coming months. Indonesia Market: Policy Uncertainty and RKAB Quota Constraints In the Indonesian market, participants remain in a "wait-and-see" mode, awaiting the full implementation of RKAB (mining quota) approvals. While several major miners have received approvals, many mines face quotas that are significantly reduced YoY. This trend supports the possibility that the government will enforce a stricter annual RKAB system in the short term, capping the national annual quota at approximately 260 million to 270 million wmt. As a result, many smelters now face urgent ore shortages, with only a few enterprises having sufficient inventory to sustain long-term operations. Although the domestic trade benchmark price (HPM) dropped slightly by 0.58% to $17,670/mt Ni in the second half of February due to the holiday impact, considering that the current rainy season in Indonesia persists in some regions, the approaching Ramadan will further limit production efficiency, and government approval uncertainties continue to block supply increases, the market generally expects that RKAB approval obstacles will be difficult to resolve in the short term. Intertwined with these multiple bullish factors, domestic Indonesian nickel ore prices and premiums are likely to show an upward trend.

[SMM News Flash] According to reports, during the Two Sessions, the air quality has been relatively good, and the overall intensity of environmental protection-driven production restrictions on galvanising enterprises is relatively small. In the Tianjin area, some Grade C galvanising enterprises are required to limit production from March 4 to March 12, while galvanising enterprises of other grades have not yet received production restriction notices. In Hebei province, mainly in the Tangshan area, small and medium-sized galvanising enterprises are implementing varying degrees of self-imposed production restrictions from March 4 to March 12 based on their environmental protection grades and are required to use vehicles meeting China VI vehicle emission standards for transportation. Other areas have not yet received relevant notices.

Chromium is a lustrous, hard, steel-gray metal renowned for its high melting point and resistance to tarnishing. Found naturally in the Earth's crust, chromium is essential in various industries. It is a crucial component in the production of stainless steel, giving it the desirable characteristics of strength and corrosion resistance. Additionally, chromium is used in the manufacturing of superalloys, which are vital in the aerospace industry, and in electroplating to provide a shiny, decorative finish and enhance durability. Its utility extends to the pigmentation sector, where it is employed in creating vivid colors for paints and dyes.

Lithium carbonate prices remained stable in the week ending March 21. The improved spot market performance of lithium carbonate led to price adjustments for individual orders by producers. Environmental regulations continued to limit production in smaller firms in Jiangxi. Nonetheless, other lithium salt producers in China are increasing production due to better profitability and completed maintenance. The upcoming arrival of Chilean lithium carbonate shipments to China could potentially increase supply. Cathode makers and downstream businesses are cautiously restocking at low prices, but their increasing ability to absorb costs is supporting lithium carbonate prices. Short-term expectations indicate that spot prices will remain stable.

Recently, rumors regarding Yichun have been frequent. Around February 19th, there was news that CATL might have stopped mining operations at its Jianxiaowo lithium mine in Yichun, China. However, subsequent interviews with local informants in Yichun by reporters from The Paper revealed that although CATL's Jianxiaowo lithium-bearing clay mine processing plant is indeed not operating, it is due to the normal Chinese New Year holiday, and mining activities were proceeding normally before the holiday.

SMM data showed that in January, China's copper cathode output was 969,800 mt, a month-on-month decrease of 29,600 mt or 2.96%, but a year-on-year increase of 13.65% or 116,500 mt; the output is 16,200 mt higher than the expected 953,600 mt.

SMM data showed that China’s metallurgical-grade alumina output stood at 6.72 million mt in January (31 days), and the daily average output was 216,800 mt/day, down 9,800 mt/day MoM.

SHANGHAI, May 10 (SMM) - Recently, steel mills in some parts of China have received notices requiring them to formulate reasonable annual production plans to ensure that their crude steel output does not exceed last year’s level.