Geospatial intelligence company Earth-i reports global nickel smelting activity in July fell for the second consecutive month, driven by continuing weakness in Indonesia, further corroborating tough market conditions.
Data from Earth-i’s SAVANT Global Smelting Monitoring Index, shows nickel pig iron (NPI) operations in the Southeast Asian archipelago recorded its highest level of inactivity since November 2022, at 15.9%.
Smelting activity in China also fell by 10.5%, contributing to the Global Inactive Capacity Index rising by 2.6% to 18.6%, its highest reading in over a year.
SAVANT provides indicators of smelter activities around the globe, in an easy-to-understand format, covering multiple metals and minerals. Data is collected and analysed using advanced algorithms derived from AI and machine learning techniques.
Earth-i notes the jump in the country level inactivity series for China from 11.6% to 22.1% was difficult to isolate to specific plants given the increasingly fragmented nature of the domestic industry – “save for Tangshan Kaiyuan Industrial Company’s eponymous 27 kT/a NPI plant in Hebei, which we have observed as inactive since 7 July”.
“This marks the longest period of inactivity at the site since 2018,” Earth-i reports.
Meanwhile, Africa had the greatest month-on-month change in activity, “with the Mother Continent’s inactivity capacity series falling by 19.5% to 7.2%”.
Activity also increased in Europe by 6% month-on-month although with an inactivity reading of 55.2%, Earth-i says the region remains the weakest performer globally.
“At the other end of the spectrum, activity in Asia and Oceania also increased, by 1.5%, so that the latter remains the most active region for nickel smelting relative to capacity.”
Lastly, the regional incapacity index for the Americas rose by 1% to 45.1%, which masks a solid performance in South America, with all four of the continent’s ferronickel smelters displaying good operating profiles.
Write to Adam Orlando at Mining.com.au
Images: Earth-i & Nickel Industries
