FOCUS: Indonesian Ni producers operational amid slack China demand, coronavirus fears [CORRECTED]

Nickel producers in Indonesia continue to operate at full capacity amid China’s ongoing Wuhan coronavirus pandemic, but concerns that logistical delays will exacerbate the already poor projections for material demand in 2020 loom large, participants say.

Indonesia-based nickel producers including Chinese stainless steel giant Tsingshan and domestic producer PT Antam have confirmed to Fastmarkets that they will continue to operate in line within their 2020 production guidance.
But sources close to the matter are concerned disruptions stemming from the current quarantine in China, which extended the Lunar New Year Holiday and meant many operations were suspended until February 9, will manifest in the supply chain before long, sources said.
Though many Chinese people will return to work on February 10, strict quarantine guidelines remain in place with many being encouraged to work remotely, while the worst-affected areas including Hubei in Wuhan province - where the virus originated - remain on lockdown.

“Indonesian nickel high-pressure acid leeching projects are suffering coronavirus-related delays as quarantining reaches mass Chinese funded projects in the region… the market assumes China’s stainless and battery processers will receive bountiful nickel units from new Indonesia nickel...

Published

Amy Hinton

February 10, 2020

13:25 GMT

London