Tsingshan, China's major nickel producer, has reduced ferronickel production due to delayed mine quota approvals in Indonesia. This has caused nickel costs to increase, prompting Indonesian smelters to seek alternative sources of ore from the Philippines.
Delayed quota approvals are adversely affecting nickel production and thus the stainless steel industry. Production is reportedly slowing at Tsingshan's Morowali and Weda Bay plants. However, Indonesia's nickel production is expected to increase by 15% this year to around 2.2 million tonnes and nickel imports from the Philippines have increased significantly.
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