Indonesia: Nickel Ore Market 2024

Nickel Ore Market Size in Indonesia

In 2021, the Indonesian nickel ore market decreased by -1.4% to $X for the first time since 2016, thus ending a four-year rising trend. Overall, the total consumption indicated strong growth from 2012 to 2021: its value increased at an average annual rate of +9.1% over the last nine-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, consumption increased by +119.5% against 2012 indices. Nickel ore consumption peaked at $X in 2020, and then reduced modestly in the following year.

Nickel Ore Production in Indonesia

In value terms, nickel ore production totaled $X in 2021 estimated in export price. In general, the total production indicated a notable expansion from 2012 to 2021: its value increased at an average annual rate of +4.6% over the last nine years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, production decreased by -4.0% against 2019 indices. The most prominent rate of growth was recorded in 2018 with an increase of 51% against the previous year. Nickel ore production peaked at $X in 2019; however, from 2020 to 2021, production stood at a somewhat lower figure.

Nickel Ore Exports

Exports from Indonesia

In 2021, the amount of nickel ores and concentrates exported from Indonesia fell sharply to X tons, reducing by -28.9% against the previous year's figure. Over the period under review, exports faced a significant decline. The most prominent rate of growth was recorded in 2013 with an increase of 30%. As a result, the exports attained the peak of X tons. From 2014 to 2021, the growth of the exports remained at a somewhat lower figure.

In value terms, nickel ore exports shrank notably to $X in 2021. Overall, exports faced a abrupt contraction. The most prominent rate of growth was recorded in 2019 when exports increased by 75% against the previous year. Over the period under review, the exports reached the maximum at $X in 2013; however, from 2014 to 2021, the exports stood at a somewhat lower figure.

Exports by Country

China (X tons) was the main destination for nickel ore exports from Indonesia, accounting for a 56% share of total exports. Moreover, nickel ore exports to China exceeded the volume sent to the second major destination, Ukraine (X tons), threefold. Greece (X tons) ranked third in terms of total exports with a 14% share.

From 2012 to 2021, the average annual growth rate of volume to China amounted to -33.3%. Exports to the other major destinations recorded the following average annual rates of exports growth: Ukraine (-12.9% per year) and Greece (-8.6% per year).

In value terms, China ($X) remains the key foreign market for nickel ores and concentrates exports from Indonesia, comprising 68% of total exports. The second position in the ranking was held by Ukraine ($X), with a 15% share of total exports. It was followed by Greece, with a 7.8% share.

From 2012 to 2021, the average annual rate of growth in terms of value to China amounted to -20.1%. Exports to the other major destinations recorded the following average annual rates of exports growth: Ukraine (-5.7% per year) and Greece (-5.6% per year).

Export Prices by Country

The average nickel ore export price stood at $X per ton in 2021, reducing by -33.5% against the previous year. In general, the export price, however, recorded a prominent expansion. The growth pace was the most rapid in 2018 an increase of 72% against the previous year. The export price peaked at $X per ton in 2019; however, from 2020 to 2021, the export prices failed to regain momentum.

Prices varied noticeably by country of destination: amid the top suppliers, the country with the highest price was China ($X per ton), while the average price for exports to Hong Kong SAR ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was recorded for supplies to China (+19.8%), while the prices for the other major destinations experienced more modest paces of growth.

Nickel Ore Imports

Imports into Indonesia

In 2021, purchases abroad of nickel ores and concentrates was finally on the rise to reach X kg for the first time since 2017, thus ending a three-year declining trend. In general, imports continue to indicate resilient growth. The most prominent rate of growth was recorded in 2014 with an increase of 182%. Imports peaked at X kg in 2017; however, from 2018 to 2021, imports remained at a lower figure.

In value terms, nickel ore imports fell dramatically to $X in 2021. Over the period under review, imports, however, saw a deep reduction. The growth pace was the most rapid in 2016 when imports increased by 76% against the previous year. Over the period under review, imports hit record highs at $X in 2017; however, from 2018 to 2021, imports failed to regain momentum.

Imports by Country

Singapore (X kg), Australia (X kg) and the United States (X kg) were the main suppliers of nickel ore imports to Indonesia, together accounting for 81% of total imports. China, the Philippines and Guatemala lagged somewhat behind, together accounting for a further 17%.

From 2012 to 2021, the biggest increases were recorded for China (with a CAGR of +220.0%), while purchases for the other leaders experienced more modest paces of growth.

In value terms, the largest nickel ore suppliers to Indonesia were Australia ($X), Singapore ($X) and the United States ($X), together accounting for 80% of total imports. These countries were followed by China, the Philippines and Guatemala, which together accounted for a further 18%.

China, with a CAGR of +37.7%, saw the highest rates of growth with regard to the value of imports, among the main suppliers over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Import Prices by Country

In 2021, the average nickel ore import price amounted to $X per ton, dropping by -47.5% against the previous year. Overall, the import price showed a deep reduction. The growth pace was the most rapid in 2018 an increase of 30%. Over the period under review, average import prices attained the peak figure at $X per ton in 2012; however, from 2013 to 2021, import prices stood at a somewhat lower figure.

There were significant differences in the average prices amongst the major supplying countries. In 2021, amid the top importers, the country with the highest price was the United States ($X per ton), while the price for Guatemala ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by South Korea (+16.7%), while the prices for the other major suppliers experienced a decline.

Source: IndexBox Platform