Singapore 22/07/2016 - China's nickel ore and concentrate imports fell 18.9 percent year-on-year but rose 14.3 percent month-on-month to 3.52 million tonnes in June, according to latest data from Chinese customs.
Of the June imports, 3.47 million tonnes were from the Philippines, which was an 18.1-percent decline from the same month of last year.
Total nickel ore and concentrate imports fell 23.5 percent year-on-year to 11.18 million tonnes in January-June. Those from the Philippines dropped 24.4 percent year-on-year to 10.67 million tonnes during the period.
The decrease in imports so far this year reflects slower demand from Chinese nickel pig iron (NPI) producers and a drop in shipments from the Philippines earlier this year due to heavy rains that hampered mining and transport, sources said.
Exports from the Philippines have, however, increased on a month-on-month basis - shipments have resumed at the end of its monsoon season.
The Philippines' largest nickel ore miner, Nickel Asia Corp, plans to step up ore exports to China for the rest of the year to make up for the shortfall in the first half and has downplayed possible stoppages to shipments from its Manicani operations.
Still, market participants are watching for any signs of disruptions to Philippine nickel ore exports after the country started a month-long mining audit and ordered some mines to shut due to alleged environmental violations.
Chinese NPI production is expected to be affected by the anticipated decline in Philippine nickel ore exports this year, Chinese metals research firm Beijing Antaike said in a report this week.
Nickel ore stockpiling in China this year has been weaker than last year and NPI producers may have to seek other sources to make up for the shortfall from the Philippines, it said.
While Chinese nickel ore port stocks still hold an estimated two months of consumption, the country must stockpile nickel ore around six months of usage from the Philippines in the coming months before the rainy season at the latter starts, sources estimate. The rainy season typically lasts from late in the year until March the following year.
Meanwhile, China's refined nickel and nickel alloy imports slipped 4.2 percent year-on-year and 1.2 percent month-on-month to 37,127 tonnes in June - largely seen as due to the lack of import arbitrage opportunities.
Imports totalled 232,290 tonnes in the first half, more than double imports in the same period of last year.
China's ferronickel imports rose 25.8 percent year-on-year to 78,612 tonnes in June, taking year-to-date imports to 464,968 tonnes. This is a 45.1-percent increase from the same period of 2015.
Ferronickel imports have remained strong due to production cuts among Chinese nickel and NPI producers and a ramp-up of NPI projects in Indonesia.
Ferronickel imports from Indonesia into China jumped four-fold year-on-year to 316,213 tonnes in the first half.
(Editing by Mark Shaw)