Refined nickel production in China reached 36,250 tonnes in April, up 6% from March and 47% higher year-on-year, according to data from Shanghai Metals Market (SMM). Over the first four months of 2025, total output rose to 131,000 tonnes, marking a 31.7% increase compared to the same period in 2024.
The rise in refined nickel output has been supported by high capacity utilisation rates at major producers. However, the combination of elevated raw material prices—driven by higher Indonesian royalties on nickel ore—and an oversupplied market may result in lower production in May, SMM analysts said.
Nickel sulfate output in China remained flat month-on-month at 25,900 tonnes of pure metal equivalent in April but declined by 24.8% compared to April 2024. For the first four months of 2025, output totalled 101,700 tonnes, a 21.3% drop year-on-year. The decline reflects weak demand—partly attributed to U.S. tariffs—and rising input costs, which have led some battery material producers to scale back output.
Nickel pig iron (NPI) production in China stood at 26,600 tonnes in April, just 0.2% above March levels and 1% lower than a year earlier. From January to April, total NPI output reached 109,950 tonnes, also a 1% year-on-year increase. Despite falling NPI prices, stable supply of ore from the Philippines has helped maintain steady output, according to SMM.
Meanwhile, Indonesia produced 143,200 tonnes of NPI in April, up 1.2% from March and 17.2% higher than in April 2024. Over the four-month period, Indonesian output rose by 20.7% to 561,800 tonnes. The sector is being shaped by conflicting trends—new facilities are coming online, but falling prices and increased ore costs have started to impact production efficiency at existing sites.
