Singapore 23/09/2016 - China's nickel ore and concentrate imports rose 11.2 percent year-on-year and 30.1 percent month-on-month to 4.28 million tonnes in August, according to latest data from Chinese customs.
Of the August imports, 4.17 million tonnes were from the Philippines, which was a 9.4-percent increase from the same month of last year.
Total nickel ore and concentrate imports fell 20.2 percent year-on-year to 18.73 million tonnes in January-August. Those from the Philippines were down 21.3 percent year-on-year at 17.99 million tonnes during that period.
The decrease in imports so far this year reflects a slowdown in shipments from the Philippines earlier this year due to heavy rains that hampered mining and transport, sources said.
Market participants are watching for any signs of disruptions to Philippine nickel ore exports due to its mining audit in which several mines have been suspended. So far major producers have not been affected but Filipino authorities warned on Wednesday that another 12 miners could be suspended when it releases its mining audit results next Monday.
Chinese users need to stockpile sufficient ore from the Philippines before the rainy season starts in parts of Southeast Asia - typically from the fourth quarter of the year till the early part of the following year - and hampers shipments and mining operations.
Chinese nickel ore port stocks were last at 14 million tonnes in mid-September, up from 13 million tonnes in mid-July, which covers two to three months of usage.
Meanwhile, China's refined nickel and nickel alloy imports rose 44.6 percent year-on-year to 29,809 tonnes in August despite it still being loss-making to do so. The increase is possibly due to deliveries into Shanghai Futures Exchange (SHFE) for contract settlements and from nickel financing deals, a Guangzhou-based nickel analyst said.
Imports totalled 290,291 tonnes in the first eight months of the year, up 68 percent from the same period of 2015. Imports have increased this year after SHFE listed Norilsk Nickel's brands - its first foreign brand - in June last year.
China's ferronickel imports rose 51.5 percent year-on-year to 80,856 tonnes in August, taking year-to-date imports to 638,032 tonnes. This is a 47.4-percent increase from the same period last year.
Ferronickel imports have remained strong due to the ramp-up of NPI projects in Indonesia. Ferronickel imports from Indonesia into China surged 178.3 percent year-on-year to 60,204 tonnes in August, taking imports to 450,874 tonnes in January-August. This is a four-fold year-on-year rise.
(Editing by Mark Shaw)