MHP, nickel sulphate drive Indonesia Ni export growth

: Metals
24/08/07

Indonesian nickel exports rose sharply on the year in the first half of 2024, because of increased production capacity for mixed hydroxide precipitate (MHP) and nickel sulphate, according to research undertaken by Australian bank Macquarie.

Indonesia's total nickel exports amounted to 805,000t during January-June, a year-on-year rise of 20.7pc. Total exports inclusive of stainless steel rose by 22pc on the year to 998,000t.

The country's four operating high-pressure acid leach plants exported a combined 139,000t of nickel metal in MHP and nickel sulphate during January-June, a year-on-year rise of 106pc. Second-quarter exports alone were at 81,000t, Macquarie said.

Nickel sulphate exports grew from 5,400t in the first half of 2023 to 85,400t this year, equivalent to 19,000t in nickel metal. Exports of nickel in MHP grew by 80pc on the year to 120,000t, Macquarie said.

Growth in exports of nickel pig iron (NPI), the biggest product by exported volumes, grew by 13pc on the year in January-June, to 544,000t. Weak NPI export growth relative to that of MHP and nickel sulphate is indicative of Indonesia's rising prominence in the battery materials sector.

Indonesia's high-grade matte exports declined year on year, as more supply was absorbed domestically in the production of nickel metal. Total high-grade matte exports declined by 17.8pc to 101,000t, according to Macquarie.

Nickel ore exports increased across the second quarter, according to Macquarie's data, indicating a continuing tightness in domestic supply even as the government accelerated its approval of mining quotas. Indonesia imported 900,000 wet metric tonnes (wmt) of nickel ore from the Philippines in June, up from 200,000wmt in March and zero in January-February.

NPI exports to China declined over the first half of the year, according to Macquarie. China's share of Indonesian NPI exports fell to 74pc in June, the lowest since the first quarter of 2022. Instead, more NPI is flowing from Indonesia to India and Europe because of the cost benefits it provides, Macquarie said.

Indonesian stainless steel melt production was up by 25pc year on year during January-June, a turnaround from 2022 and 2023 when production contracted by 4pc and 9pc, respectively, Macquarie's data show.

By Raghav Jain

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25/06/18

Eurofer calls for 50pc quota tariff post safeguard

New York, 18 June (Argus) — European steel association Eurofer has asked the European Commission to implement an out-of-quota tariff of 50pc in its post safeguard measure, while reducing duty-free volumes by 50pc, Italian steelmaker Arvedi chief executive Mario Arvedi Caldonazzo told the Global Steel Dynamics Forum in New York late yesterday. "We need to adopt a strict and severe trade defence measure," Caldonazzo said, adding that discussions with the commission were ongoing, and that it would publish a proposal on the measures that would replace the safeguard in mid-July. Eurofer, of which Caldonazzo is vice-president, wants these measures to come into play in January 2026, earlier than the planned lapse of the current safeguard mechanism in June 2026. Imports have reached as much as 30pc of total supply on some products, at much lower prices than domestic production. "The commission is aware this is the move that will determine the future of the European industry," he said. Eurofer hopes the commission will make its proposal regarding a melt-and-pour clause in September-October, and that scrap will be recognised as a critical raw material. Caldonazzo said the EU exports 20mn t of scrap that is transformed into steel products then sold back to Europe, and that more material being retained could help mills increase scrap usage and reduce their carbon footprint. The EU's carbon border adjustment mechanism (CBAM) also needs to be extended downstream to address the risk of circumvention, and also that "resource shuffling" is addressed. This is where mills use a portion of greener production to sell into the EU at a lower payable tax, while retaining more carbon intensive sales into other markets. "Without these measures the future will be very sad," Caldonazzo said, adding that the EU could just end up importing and re-rolling semi-finished steel. Lourenco Goncalves, the outspoken head of Cleveland-Cliffs, said in another presentation that the EU would eliminate its carbon emissions by ceasing to produce steel. Talks over the Global Arrangement on Sustainable Steel and Aluminum (GASA) should be restarted, building a free trade agreement between the US and EU, allowing both to expand trade on a duty and quota free basis, Caldonazzo said. This would be possible should the EU have similar trade defence measures to the US, such as a melt and pour. On the sidelines of the conference he told Argus there will be no recovery in the EU market this year, given the disparity between imports and domestic prices, and the very low level of demand. By Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Australia's Lynas produces terbium oxide in Malaysia

25/06/18

Australia's Lynas produces terbium oxide in Malaysia

Sydney, 18 June (Argus) — Australian mineral producer Lynas Rare Earths has produced terbium oxide at its Malaysian rare earth plant, adding to its line of rare earth products, the firm announced today. The company produced the oxide using 1,500 t/yr heavy rare earth separation circuits it built in January-March. It previously used the circuits to produce separated dysprosium at the plant in May, becoming the first producer of separated heavy rare earths outside China. Lynas plans to eventually expand its rare earth product line to include dysprosium, terbium, and holmium concentrate, alongside unseparated samarium/europium/gadolinium and unseparated mixed heavy rare earths. Lynas supplies its Malaysian plant with rare earth feedstock from its Mount Weld mine and Kalgoorlie processing plant in Western Australia (WA). But it may expand its feedstock sources in the future. The company signed an initial agreement with Malaysian investment agency Menteri Besar in late May to buy mixed rare earth carbonates from developing Malaysian ionic clay deposits. It did not disclose supply volumes. Lynas' product line expansion comes soon after US and European automakers warned that rare earth export controls could lead to assembly line shutdowns. Lynas is developing a rare earth production plant in the US with the same capabilities as its Malaysian plant. Lynas plans to produce 2,500-3,000 t/yr of heavy rare earth products and 5,000 t/yr of light rare earth products at the site when it opens. The US government helped fund the project in 2019 through a presidential directive under the Defence Production Act . By Avinash Govind Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US Supreme Court asked to rule on tariffs

25/06/17

US Supreme Court asked to rule on tariffs

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Chevron latest E&P to join the US lithium hunt

25/06/17

Chevron latest E&P to join the US lithium hunt

New York, 17 June (Argus) — Chevron has joined the ranks of some of the world's biggest oil producers in taking initial steps to explore for lithium, a key component in electric vehicle (EV) batteries. The second-biggest US oil major said it has acquired about 125,000 net acres in northeast Texas and southwest Arkansas, covering parts of the Smackover formation — a region that has already drawn interest from rivals including ExxonMobil and Equinor for the high lithium content in its briny groundwater. Oil companies are seeking to leverage existing skillsets to deploy advanced methods to extract lithium from brine water — which is regularly produced along with oil and natural gas — at the subsurface. The goal is to produce lithium at lower cost and with a smaller environmental footprint than traditional hard rock mining techniques or those that require massive evaporation ponds and more freshwater resources. "Establishing domestic and resilient lithium supply chains is essential not only to maintaining US energy leadership but also to meeting the growing demand from customers," said Jeff Gustavson, president of Chevron New Energies. "This opportunity builds on many of Chevron's strengths including subsurface resource development." Chevron acquired the two leasehold acreage positions from TerraVolta Resources, whose investor is an affiliate of the Energy & Minerals Group, and East Texas Natural Resources. Financial details of the deals were not disclosed. The announcement follows growing interest in the region as oil companies seek to navigate the demands of the energy transition. Smackover Lithium, a joint venture between Standard Lithium and Equinor, aims to produce 22,500 t/yr of battery-grade lithium carbonate from the Southwest Arkansas Project (SWA) by 2028. In May, the Arkansas Oil and Gas Commission approved a 2.5pc quarterly gross royalty for the Reynolds Unit in Phase I of SWA, located in Lafayette and Columbia counties —setting a precedent for similar projects statewide. In November 2024, ExxonMobil signed a deal to supply up to 100,000 t of lithium carbonate to South Korea's LG Chem , sourcing the feedstock from the Smackover Formation. "By early next decade, big oil and big mining will replace the likes of [major US-based lithium producer] Albemarle at the top of the lithium world," said independent analyst Joe Lowry, host of the Global Lithium podcast. By Stephen Cunningham and Carol Luk Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Aerospace industry opposes US section 232 measures

25/06/17

Aerospace industry opposes US section 232 measures

London, 17 June (Argus) — Major US-based original equipment manufacturers (OEM) have voiced opposition to a section 232 national security investigation into imports of commercial aircraft, jet engines and associated components, with most calling on the commerce department to commit to a tariff-free regime. The probe, launched on 1 May, elicited input from 205 stakeholders — ranging from individuals to leading aerospace companies — during a three-week comment period. The US is host to the largest aerospace and defence (A&D) industry in the world, and has maintained a positive trade surplus for over 70 years, according to the Aerospace Industries Association (AIA). The US exported $135.9bn worth of A&D goods in 2023, with a positive trade balance of $74.5bn, AIA data show. Respondents attributed this surplus to the World Trade Organization's 1979 Agreement on Trade in Civil Aircraft, which covers trade in civil aircraft, engines and parts between 33 signatory countries including the US, EU, UK, Canada and Japan. Domestic OEMs warn of supply chain disruption Boeing noted that while it relies heavily on domestic sources for its supply chain, around 75pc of its revenue comes from overseas customers, so "foreign market access is critical to Boeing's competitiveness". US carriers will account for only 18pc of the nearly 44,000 new aircraft projected to be built over the next 20 years to meet growing air travel demand, it added. Boeing emphasised the need for diverse global supply chains, adding that quality and regulatory constraints make rapid onshoring of manufacturing capacity a challenge. The critical nature of aviation requires articles to be subject to stringent safety and quality standards. "It may take up to 10 years to establish a new domestic supplier and ensure they meet necessary, rigorous safety certifications," the AIA said. High standards make any short-term disruption to a suppliers' operations particularly damaging. "The loss of one supplier can take many years to rectify," Boeing's head of government, global public policy and corporate strategy Jeff Shockey wrote. "There are often no viable alternative suppliers that can quickly meet the required certification standards, and compromises on those standards — many of which are grounded in aviation safety — are not an option." Kansas-based fuselage manufacturer Spirit AeroSystems urged the commerce department to prevent the implementation of import tariffs because higher duties would increase operating costs, upend long-term supply negotiations and add financial burdens to the industry. The firm highlighted the importance of its UK operations in supporting major aircraft programmes, and said any trade restrictions on that country would create risk for its production schedules. Virginia-based engine maker RTX cautioned that any tariffs levied under section 232 could threaten investment in its domestic manufacturing operations. This includes more than $1bn earmarked for its Asheville facility in North Carolina to expand production capacity of engine blades and vanes, and to add foundry operations for castings in the next few years. RTX warned that any undue pressure on its US supply network — comprising 20,000 companies — could result in small businesses, which are still recovering from Covid-19, to "close their doors". That would have a cascading effect on the wider multi-tiered supply chain, RTX said. RTX subsidiary Pratt & Whitney's PW1100G-JM geared turbofan engine helps power Airbus' A320neo family. EU, UK stress ties with US partners, facilities The investigation drew responses from several European and UK OEMs that have significant ties to US aerospace supply chains. Europe-based Airbus, through its US subsidiary, stressed that commercial aircraft manufacturing depends on a global supply chain and onshoring that entirely to any single country is neither realistic nor sensible. Airbus' A320 aircraft has 340,000 unique parts, each requiring years of certification. Airbus operates a final assembly line for its A320 and A220 jets in Mobile, Alabama, and has already said tariffs have hit assemblies imported to this operation . French engine manufacturer Safran pointed out that CFM International — its joint venture with GE Aerospace — produces the LEAP engine, which exclusively powers Boeing's 737 MAX aircraft. Safran also supplies the low-pressure compressor module to GE Aerospace for its GEnx engine fitted to Boeing's 787 Dreamliner. Boeing's alternative engine for the 787 is the Trent 1000 supplied by UK manufacturer Rolls-Royce, which commented that 60pc of aircraft with its engines are based in the US. It further highlighted the negative effect that tariffs have already had on maintenance, repair and overhaul operations, leading customers to delay repair work or seek unapproved alternatives. Ti forgings characterise broader tariff risks Aerospace parts often rely on unique metals, alloys, composites, forgings and castings that have specific properties, Boeing wrote. Machinery to manufacture these items is purpose-built and limited in capacity. Large structural forgings require unique forging presses capable of exceeding 30,000t hydraulic force, located in the US, Russia, China, France, Japan and Austria. Austrian forger Voestalpine Bohler Aerospace underlined that transatlantic reciprocity extends from finished aircraft and engines down to approved raw materials such as titanium and nickel-based alloys. "The industry cannot rapidly replace suppliers without creating significant cost overruns, supply chain bottlenecks, and safety risks," Voestalpine wrote. Pennsylvania-based Perryman, a key producer of titanium ingot and mill products, said continued access to global suppliers and aerospace-grade raw materials is crucial to avoid disruptions to domestic manufacturing. Perryman also argued that the interconnected nature of the titanium and aviation industries requires balanced trade solutions. The US relies solely on imports of titanium sponge, a necessary input for ingot melting, while also drawing approximately 50pc of its scrap needs from overseas. By Samuel Wood and Alex Nicoll Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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