Organized by Shanghai Ganglian E-Commerce Co., Ltd. (Mysteel), co-organized by PT. Wanxiang Nickel Indonesia, specially co-sponsored by CNGR Advanced Material Co., Ltd. and SANY Group Co., Ltd., jointly co-sponsored by Xiamen ITG Holding Group Co., Ltd. and Jiangsu SOHO Holdings Group Huizhong Zhongding Company, and specially sponsored by C&D Logistics Group Co., Ltd. and Nanjing Panco Microgrid Technology Co., Ltd., the 2024 (Third) International Nickel-Chromium Stainless Steel and New Energy Industry Development Conference was grandly held from May 7 to 9, 2024, at the Shangri-La Hotel in Jakarta, Indonesia.
On the morning of May 8th, the conference officially commenced. During the opening remarks, Gao Bo, Co-Chairman and President of Shanghai Ganglian E-Commerce Co., Ltd., delivered a speech. Subsequently, Fu Peiwen, Vice President of Zhongwei New Material Co., Ltd.'s Indonesia Region, and Gao Xiang, General Manager of Jiangsu Soho Holdings Group's Huihong Zhongding Company, each gave their opening addresses.
Gao Bo, Co-Chairman and President of Shanghai Ganglian E-Commerce Co., Ltd.
Fu Peiwen, Vice President of Zhongwei New Material Co., Ltd.'s Indonesia Region
Gao Xiang, General Manager of Jiangsu Soho Holdings Group's Huihong Zhongding Company
Next, we will enter the guest speech segment. First, Beni Suryadi, Manager of the ASEAN Centre for Energy, delivered a brilliant speech titled “Cooperation on Mineral Resources and Policies on Key Mineral Metals in Southeast Asia.”
Beni Suryadi, Manager of the ASEAN Centre for Energy
Firstly, Beni Suryadi briefly introduced ASEAN and the ASEAN Centre for Energy: The ASEAN member states primarily include Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam, which together form one of the world’s largest economic entities. The ASEAN Centre for Energy (ACE) was established on January 1, 1999, to support the review and implementation of various energy cooperation activities by senior officials on energy issues and to facilitate engagement with dialogue partners and international organizations (DPs/IOs). Subsequently, Beni Suryadi elaborated on the energy development plans of the ASEAN Centre for Energy. He then discussed the advantages of clean energy technologies and provided forecasts, emphasizing the significance of developing clean energy. Following this, Beni Suryadi shared insights on the production of metal minerals in ASEAN and the production and manufacturing under clean energy technologies. Finally, from a developmental perspective, Beni Suryadi proposed the ASEAN Mineral Cooperation Initiative.
After Beni Suryadi’s speech, Prof. Irwandy Arif, Special Staff to the Minister for Mineral and Coal Governance, delivered an excellent presentation titled “Overview of Indonesia’s Mineral Resources and Related Policies.”
Prof. Irwandy Arif, Special Staff to the Minister for Mineral and Coal Governance
Prof. Irwandy Arif began by introducing Indonesia’s abundant mineral resources, including various metal minerals and coal reserves and production. He then provided an overview of the current state of Indonesia’s steel industry. Following this, Prof. Irwandy Arif discussed Indonesia’s steel trade situation. Lastly, he offered recommendations for the future development of Indonesia’s steel industry, including but not limited to the introduction of advanced equipment and improving capacity utilization through import controls.
After Prof. Irwandy Arif’s speech, Mohammad Faizal ST, MM, Director for Downstream Strategic Investment, delivered an insightful presentation titled “INDONESIA NICKEL DOWNSTREAM INDUSTRY update.”
Mohammad Faizal ST, MM, Director for Downstream Strategic Investment
Mr. Mohammad Faizal ST, MM pointed out that Indonesia is currently focusing on transforming its natural resources into higher value-added products. For instance, the development of nickel ore for the production of electric vehicle batteries, thereby increasing its value. Minerals like nickel, bauxite, and copper need to be processed before export. Furthermore, Mr. Mohammad Faizal ST, MM mentioned that the Indonesian government aims to prioritize the development of the electric vehicle battery and stainless steel industries, aspiring to become the world’s leading producer of electric vehicle batteries and top-tier stainless steel by 2040.
He then discussed the roles of China and Indonesia in the global supply chain of battery packs and stainless steel, highlighting ongoing innovations to enhance trade positions. Indonesia’s nickel reserves are mainly distributed across 79 locations in Southeast Sulawesi (35%), 76 locations in Central Sulawesi (17%), and 79 locations in North Maluku (28%).
Finally, Mr. Mohammad Faizal ST, MM provided an outlook on the downstream nickel industry in Indonesia, noting that two battery plants under construction are expected to commence operations in 2024, with a total output of 377 kWh. Additionally, the development of downstream nickel exploration sites includes supporting infrastructure such as airports and roads. The construction of a stainless steel derivative industry with a capacity of 100,000 tons per year is also planned to meet domestic and export demands.
After Mohammad Faizal ST’s speech, Daniil Pitirimov, Chief Analyst of Nickel and Cobalt at Norilsk Nickel, delivered a presentation titled “Latest Developments in the Global Nickel Market: Is the Market Really Oversupplied When We Talk About ESG Demand Outside China?”
Daniil Pitirimov, Chief Analyst of Nickel and Cobalt at Norilsk Nickel
This presentation covered five main aspects: (1) Introduction to Norilsk Nickel. (2) Trends in global nickel supply changes. (3) The impact of carbon emissions from nickel production in Indonesia on the automotive industry’s adaptability. (4) Nickel consumption driven by the stainless steel alloy and battery industries. (5) Battery manufacturers procuring green nickel will gain more market recognition.
After Daniil Pitirimov’s speech, Cao Ruifeng, Chief Engineer of Nanjing Pankong Microgrid Technology Co., Ltd., delivered a speech titled “Empowering the Internationalization and Green Transformation of the Smelting Industry with Isolated Grid Operation Technology.”
Speech Introduction: Company Profile and Microgrid Business, Traditional Coal-Fired Isolated Grid Operation, and High Proportion of Renewable Energy Isolated Grid Operation
After Cao Ruifeng’s speech, Dr. Hu Guorong, a second-level professor, doctoral supervisor at Central South University, and an expert receiving special government allowances from the State Council, delivered a brilliant presentation titled “Current Status and Development Trends of Ternary Materials for Lithium Batteries under the Dual-Carbon Background.”
Dr. Hu Guorong, Second-Level Professor, Doctoral Supervisor, Expert Receiving Special Government Allowances from the State Council, Central South University
Firstly, Professor Hu introduced the industry background from the perspectives of energy security, dual-carbon strategic goals, and industrial technology transformation. He then elaborated on the development, application, and performance of lithium-ion batteries. Moving on to the development of power batteries, he discussed the requirements of electric vehicles for power batteries and the indicators of competitive power lithium batteries, citing examples such as CATL’s CTP module-free technology, Kirin Battery, and BYD’s second-generation Blade Battery. He also discussed the development of energy storage batteries, emphasizing the need for high-safety, long-life, and low-cost energy storage technologies to advance the new energy industry.
Professor Hu then explained the development of cathode materials, highlighting their high growth and potential, and their evolution towards high safety, long life, and low cost. He proceeded to introduce the current status and development trends of the ternary materials industry, offering several suggestions for the future development of high-nickel ternary materials: 1) Address safety issues to further improve mileage; 2) Increase industry concentration; 3) Promote large-scale and intelligent equipment; 4) Choose locations carefully; 5) Extend upstream and downstream; 6) Promote industrial recycling; 7) Co-produce high-nickel ternary materials and lithium iron phosphate materials. Finally, he summarized that ternary materials have advantages in low temperature, fast charging, and range, and continue to have strong demand. He emphasized the importance of a stable and secure supply chain, the growth of power batteries, and the need for raw material supply assurance. He also noted the challenges of carbon footprint and recycling policies, pointing out that ternary materials have high recycling value and can easily form a closed-loop industry in the future, meeting the carbon reduction recycling requirements—green and low-carbon throughout the entire lifecycle.
After Professor Hu’s speech, M.S. Muchtazar from Nickel Industries Limited delivered a presentation titled “ESG and Sustainability in the Nickel Sector: A Case Study of Nickel Industries Limited.”
Muchtazar, M.S., Head of Sustainability, Nickel Industries Limited
Muchtazar began by introducing Nickel Industries Limited (NIC) as a leading investment company in the nickel processing industry, which has formed partnerships with globally low-capital-intensive and high-profit-margin nickel enterprises, such as the world’s largest stainless steel producer, Tsingshan Group. He stated that the company’s goal is to become the world’s leading global nickel company, creating an unparalleled diversified, low-cost, sustainable production platform for nickel products, based on the best global mining standards. He then explained why Indonesia is suitable for concentrated investment in the nickel industry, noting that Indonesia is now the global nickel supply center for the electric vehicle revolution.
Muchtazar highlighted that Indonesia’s nickel industry has invested in environmental, social responsibility, and corporate governance aspects, including reducing carbon emissions, enhancing the investment environment to create an excellent local community atmosphere, and setting a goal to complete carbon neutrality projects by 2030. By 2035, the carbon emission intensity is expected to be reduced by 50%, and net-zero emissions are to be achieved by 2050. He then described Nickel Industries Limited’s (NIC) commitment to becoming a global leader in the sustainable production of battery-grade Class 1 nickel, focusing on new energy, reducing carbon emissions, saving water, and protecting biodiversity.
In terms of social incentives, NIC is committed to long-term investment in the nickel industry from five key factors: education, health, actual income and economic independence, infrastructure, and socio-cultural aspects. On the political governance front, Muchtazar discussed anti-corruption, human rights and anti-slavery, and equal opportunities.
Finally, Muchtazar briefly listed some recent business achievements and awards. According to the Indonesian Ministry of Environment and Forestry’s (KLHK) green PROPER rating, the Hengjaya Mine has become an important asset for the Indonesian government and a top example of sustainable mining in Indonesia, winning the Most Promising Transformation Award and TrenAsia ESG in 2023.
After Muchtazar’s speech, Meidy Katrin Lengkey, Secretary-General of the Indonesian Nickel Miners Association, delivered a compelling presentation titled “Policy Updates and Overview of the Indonesian Nickel Industry and Nickel Price Benchmarking” at this conference.
Mr. Cui Dongshu, Secretary-General of the National Passenger Car Market Information Association
Mr. Cui began by comparing fuel vehicles and electric vehicles. He noted that internal combustion engines have an actual efficiency of about 30%-40%, while electric motors have an actual efficiency of no less than 60%. Internal combustion engine vehicles achieve maximum efficiency at higher speeds, whereas electric motors maintain maximum efficiency from low to high speeds. For fuel vehicles, crude oil is transported, refined, and then delivered to gas stations before being filled into the vehicle and converted into kinetic energy by the internal combustion engine. This process is low-cost, high-tax, and storable. For electric vehicles, electricity is transmitted through the grid to the electric vehicle, ultimately converting into kinetic energy. This process is low-cost, low-tax, and difficult to store. The energy conversion and emission process for fuel vehicles is well-established, with challenges in exhaust gas treatment and potential for waste heat utilization. Electric vehicles, on the other hand, have no exhaust emissions, and pollution is related to the energy source, indicating significant room for improvement.
After Mr. Cui’s speech, Qiu Xiang, Assistant General Manager of the Indonesia Region at Zhongwei New Materials Co., Ltd., delivered an insightful presentation titled “Nickel Supply and Demand Outlook under the Electric Wave.”
Qiu Xiang, Assistant General Manager of the Indonesia Region, Zhongwei New Materials Co., Ltd.
Mr. Qiu first analyzed the current global supply and demand status of nickel, focusing on the distribution of global nickel ore resources and smelting capacity, as well as the basic situation of the nickel industry in the Indonesian region.
He then listed the changes in nickel demand under the electric wave: 1) Macro environment changes in the new energy industry chain; 2) New energy market scale and growth; 3) The development of electric vehicles, the battery/storage field, and the hydrogen energy field’s demand for nickel. Mr. Qiu also analyzed the trends in LME and nickel raw material prices, changes in nickel raw material costs due to smelting technology innovations, global economic environment, global economic conditions, and the impact of Indonesian policies on the nickel market. He further discussed the sustainable development of the nickel supply chain, including issues faced in nickel resource development, directions for nickel resource extraction, and environmental challenges in the nickel smelting process.
Mr. Qiu then shared his outlook on the future of the nickel market: 1) Strategic reserves and resource management of nickel resources; 2) The trend towards high-nickel and high-energy-density battery materials, focusing on high safety and low cost; 3) Research and development directions for ternary materials in the nickel industry, including: 1) Polycrystalline materials: inner and outer layer structure regulation, ultra-large particles, and fine needle-like morphology for optimizing long-cycle and ultra-high nickel high-capacity performance. 2) Single-crystal materials: high activity, bulk doping, surface coating to enhance structural stability and optimize product performance under high voltage.
Finally, Mr. Qiu presented Zhongwei’s nickel industry plan, which includes a diversified product series, integrated global base layout, integrated resource layout, carbon goals, and sustainable development strategies.
Xinyanglian (Shanxi) Holding Group Co., Ltd. - Tian Peng
The speech will cover four main aspects:
Xinyanglian (Shanxi) Holding Group Co., Ltd. was established in 2007. It is a cross-regional, group-based ferrochrome production enterprise integrating production, research and development, marketing, and trade. The company owns 10 production enterprises with an annual capacity of 3 million tons of high-carbon ferrochrome, making it the largest in China. It has acquired a chromite mine in South Africa with a resource reserve of 60 million tons and a ferrochrome smelter with an annual capacity of 100,000 tons.
Currently, chromite has been found in 40 countries worldwide, but its distribution is highly concentrated. Over 90% of chromite is concentrated in six countries: South Africa, Kazakhstan, Turkey, Zimbabwe, India, and Finland. Additionally, Albania, Papua New Guinea, Brazil, Pakistan, and Oman also have some chromite resources. According to USGS data, the global total reserves of chromite (shipping grade) in 2023 are 560 million tons.
3. Chrome Supply and Demand in the Chinese Market
In 2023, the accelerated commissioning of new domestic ferrochrome production capacity increased raw material demand. Coupled with improved shipping efficiency from South Africa, annual imports grew by over 20% year-on-year. However, port inventory build-up was slow, with total inventory increasing by only 350,000 tons by the end of 2023 compared to the beginning of the year. The concentration of resources makes prices susceptible to fluctuations, showing a tendency to rise easily but fall with difficulty. High production costs provide strong support for the bottom price of ferrochrome, but profitability remains weak, with average profit margins in Inner Mongolia’s main production area ranging between 2-5%. Increased domestic production has impacted imported ferrochrome, with China’s total high-carbon ferrochrome production reaching 7.3021 million tons in 2023, a year-on-year increase of 13.8%. The overall supply-demand balance of ferrochrome remains weak, supported by costs.
In 2024, narrower fluctuations in raw material prices will boost downstream inventory levels. Additionally, recovery in the real estate sector and new demand in fields like new energy will further stimulate demand. With increased capacity from projects in Liyang and Shandong, it is estimated (neutral estimate) that China’s crude stainless steel production will reach 36.84 million tons in 2024, a year-on-year increase of 3.4%. Global economic recovery will drive consumption, and with new project capacity in China and the recovery of stainless steel production in Indonesia, global stainless steel production is expected to increase further to 59.70 million tons in 2024, a year-on-year increase of 2.3 million tons, or 4%.
Indonesia’s potential nickel ore policy may raise bottom prices, causing upward pressure on costs and narrower fluctuation ranges within the year. Increased chromite supply, coupled with controlled pricing by mines and increased ferrochrome production in China and Indonesia, will likely maintain high chromite prices, supporting ferrochrome prices with narrower fluctuations.
Despite the increase in stainless steel production in 2024, economic recovery will not fully offset the supply increase, leading to a continued oversupply situation and limited price decline.
Ferrochrome production is expected to maintain a 10% growth rate in 2024 with the addition of new production lines. Under the pressure of excess supply, growth in downstream stainless steel production will be slow, potentially lower than the growth rate of raw material ferrochrome. Therefore, the fundamental outlook remains bearish with a slight oversupply, and ferrochrome prices will continue to be under pressure. High upstream chromite prices will limit profit margins for ferrochrome producers, who may maintain prices or increase pressure on upstream chromite suppliers to avoid losses.
4. Future Investment Opportunities and Risks in Chrome Resources
After Tian Peng’s speech, Zhang Liyou, Vice General Manager of Yongqing Group, delivered an insightful presentation titled “Stainless Steel Consumption Status & Incremental Markets.”
Yongqing Group - Vice General Manager Zhang Liyou
Zhang’s presentation focused on four main aspects: the global history and current status of stainless steel, the development status of major stainless steel-producing countries, an introduction to Tsingshan Indonesia Stainless Steel, and the challenges and difficulties under global trade barriers.
Global History and Current Status of Stainless Steel
Zhang first introduced the definition, properties, and classifications of stainless steel, followed by the origins and development stages of the global stainless steel industry, which can be divided into four phases.
Major Stainless Steel Producing Countries
In the second section, Zhang introduced the major stainless steel-producing countries. In 2023, global stainless steel production exceeded 58 million tons, with nine major markets engaged in stainless steel smelting, primarily in China, the EU, the US, and other Asian countries.
Tsingshan Indonesia Stainless Steel Park
In the third section, Zhang introduced Tsingshan Indonesia Stainless Steel Park, including the industrial parks IMIP and IWIP, stainless steel production lines and capacities, investment situations of SMI, GCNS, ITSS, IRNC, YWI, and the product portfolio and certification systems.
Challenges and Difficulties under Global Trade Barriers
Finally, Zhang discussed the challenges and difficulties under current global trade barriers.
Desmond Toh, Head of Sustainability, GLC Recycle Pte Ltd
Following Zhang Liyou’s presentation, Desmond Toh, Head of Sustainability at GLC Recycle Pte Ltd, delivered a compelling speech titled “Scaling Circular Battery Solutions.”
Desmond Toh,Head, Sustainability,GLC Recycle Pte Ltd
Desmond Toh began by using Singapore as an example to discuss the challenges posed by carbon emissions to the global environment and human survival. He proposed that the electrification of passenger vehicles could provide a feasible solution for transitioning to low-carbon energy. Toh then introduced the current global electric vehicle adoption rates, noting that China has the highest adoption rate. He also presented GLC’s circular battery solutions and introduced GLC Recycle Pte Ltd, emphasizing their goal to reduce carbon emissions, optimize resource utilization, and improve efficiency to set a benchmark for sustainability in the industry.
Finally, Toh discussed the global logistics lines for battery materials, highlighting China as the primary importer of MHP, while South Korea and Southeast Asia are major importers of waste materials.
Ajakbu, Chief Representative, China ENFI Engineering Corporation
After Desmond Toh’s speech, Ajakbu, Chief Representative of China ENFI Engineering Corporation, delivered a presentation titled “Future Technological Innovation Directions for Indonesian Metal Mines under Pyrometallurgical Capacity Restriction Policies.”
Ajakbu introduced the distribution and project status of Indonesia’s nickel industry. Indonesian nickel projects use different suitable processes to treat various types of laterite nickel ore, currently employing HPAL and RKEF methods for limonite processing.
Compared to RKEF, HPAL technology has significant cost advantages in processing low-nickel, high-cobalt limonite for producing battery-grade nickel salts. However, using side-blowing technology to treat laterite nickel ore requires addressing challenges such as furnace lining life, lance life, heat efficiency for extensive heat supplementation, and the separation of multiple metals.
Finally, Ajakbu compared the RKEF production process with the submerged combustion technology for processing medium-nickel, medium-cobalt laterite nickel ore to produce nickel pig iron, highlighting certain investment and cost advantages. For producing ferronickel, the BREF technology combining submerged combustion with electric furnaces, invented by ENFI, is more reliable.
Hua Ke, Executive President of the Asia-Pacific Region Laterite Nickel Cooperation Organization (APOL)
Following Ajakbu’s presentation, Hua Ke, Executive President and Deputy Secretary-General of the Technical Committee of the Asia-Pacific Region Laterite Nickel Cooperation Organization (APOL), delivered a speech titled “Efficient Application of Suspension Roasting Pre-reduction-Electric Furnace (SRPEF) Technology in Smelting.”
Shanghai Fengshi Technology Co., Ltd. was established on April 28, 2021, and currently has over 300 employees. Fengshi Technology has four wholly-owned subsidiaries: Chaoyang Fengshi Mining and Metallurgy Technology Co., Ltd. (R&D base), Shanghai Fengshi Engineering Technology Co., Ltd. (engineering design), Yangzhou Fengshi Mining and Metallurgy Technology Co., Ltd. (equipment manufacturing), and Shanghai Fengshi Technology (Hong Kong) Co., Ltd. “Fengshi Kaidao, Dianshi Chengjin,” Fengshi Technology is committed to becoming a global leader in providing low-carbon, efficient utilization solutions for mineral resources.
Hydrogen-Based Mineral Phase Transformation Technology
Iron ore is the most critical raw material for the steel industry and a strategic mineral resource for the country, with its security directly affecting national security. Although China has relatively abundant iron ore resources, the resources available for development and utilization are scarce. The average grade of domestic iron ore is 34.50%, far below the global average of 47.22%.
Sanhe Mining Zambia Project:
The Sanhe Mining Zambia manganese ore has a Mn grade of 12%-19% and an Fe grade of 35%-45%. Conventional technology cannot utilize it, leading to wastage and environmental pollution with over 10 million tons of waste rock stockpiled.
Hainan Mining Transformation Project:
The hematite at Hainan Mining’s Shilu Iron Mine has fine crystallization, making it challenging to achieve good technical indicators with traditional beneficiation methods. The iron concentrate grade from the original process is about 62.5%, with an iron recovery rate of only 65%.
Jiugang Project:
The Jingtieshan Iron Mine, the primary raw material source for Jiugang Group’s steel sector, is a typical complex and refractory oxidized iron ore. Due to the ore properties, the iron concentrate quality and metal recovery rate have long been poor, affecting the economic benefits.
Projects Under Negotiation
To address the efficient utilization of refractory mineral resources and solid waste resources like laterite nickel ore, oolitic hematite, and red mud, the Suspension Roasting Pre-reduction Electrical Furnace (SRPEF) technology was developed based on suspension magnetization roasting and RKEF processes.
Following Hua Ke’s presentation, Ms. Wang Huiying, Chairman of Beijing Longyue Mining Co., Ltd., delivered a speech titled “Opportunities and Challenges in Ferrochrome Import and Export Trade under New Market Conditions,” covering various aspects such as the structure of the ferrochrome industry, downstream stainless steel, high-carbon ferrochrome, low-carbon ferrochrome import and export, and market opportunities and challenges.
Wang Huiying, Chairman of Beijing Longyue Mining Co., Ltd.
Ferrochrome Industry Structure and Raw Materials
Ms. Wang Huiying provided a comprehensive overview of the ferrochrome industry structure, analyzing the cost structure and linking ferrochrome products to downstream stainless steel and other industries.
She then introduced the overall situation of chromite raw materials, noting that China imported 18.33 million tons of chromite in 2023, a year-on-year increase of 22%, with 14.92 million tons imported from South Africa. Ms. Wang pointed out that China’s monthly average port inventory of chromite has shown a downward trend in recent years, while the price trend for South African 40-42% chromite concentrate has been gradually rising. She also analyzed the cost range of high-carbon ferrochrome, considering the trends in electricity and coke prices in the northern and southern production areas.
Ms. Wang then discussed the downstream stainless steel situation. In 2023, global crude stainless steel production reached 58.445 million tons, a year-on-year increase of 4.6%. China’s crude stainless steel production was 36.676 million tons, with an apparent consumption of 31.0822 million tons, a year-on-year increase of 10.56%.
High-Carbon Ferrochrome and Low-Carbon Ferrochrome Supply
Ms. Wang continued by discussing the global high-carbon ferrochrome production, which reached 15.755 million tons in 2023, a year-on-year increase of 7.4%, and showcased the top ten global ferrochrome producers over the past two years. She noted that China’s high-carbon ferrochrome capacity has been setting new records annually since 2019, with Inner Mongolia attracting new capacity due to its electricity cost advantage. She also pointed out that China’s high-carbon ferrochrome imports reached a recent high of 3.2412 million tons in 2023, a year-on-year increase of 36%, with the main sources being South Africa and Kazakhstan, and analyzed the supply-demand balance of high-carbon ferrochrome in China for 2023.
Opportunities and Challenges in 2024
Finally, Ms. Wang discussed the opportunities and challenges for high-carbon ferrochrome in 2024:
Opportunities:
Increased global stainless steel capacity and production.
Chromite demand primarily in China and Indonesia.
Private stainless steel enterprises with complete industrial chains shifting to ferrochrome production for self-sufficiency.
China’s Inner Mongolia encouraging ferroalloy enterprises to grow stronger through carbon neutrality.
Capacity upgrades, with regions outside Inner Mongolia upgrading non-closed furnaces below 25,000 KVA.
Steel mills shifting from plain carbon steel to special steel, increasing high-carbon ferrochrome demand.
Challenges:
Excess ferrochrome capacity, with new capacity releases outpacing stainless steel demand, hindering price increases for ferrochrome and chromite.
Increased stainless steel production in China and Indonesia impacting the US, EU, and Japan, reducing their demand for ferrochrome.
More overseas ferrochrome entering China, impacting domestic producers.
International geopolitical changes affecting production and transportation, exchange rate fluctuations, and shipping cost variations significantly impacting ferrochrome import and export.
China’s future increase in scrap steel usage reducing ferrochrome demand.
After Wang Huiying’s speech, Mr. Jia Qipu, Executive Director of Augustus Maritime / Secretary-General of APOL, delivered an insightful presentation on “Changes in the Stainless Steel Nickel-Iron Industry Chain and Global Shipping under Geopolitical Influence.”
Augustus Maritime Executive Director / APOL Secretary-General Jia Qipu
Mr. Jia Qipu provided an in-depth analysis of the changes in the stainless steel nickel-iron industry chain. He introduced the recent trends in the import and export as well as production of nickel ore from the Philippines, nickel-iron, and stainless steel in China and India. Additionally, he offered a detailed interpretation of the factors affecting global shipping, discussing how geopolitical factors, international demand, and Indonesian supply affect global maritime transport. His presentation provided valuable market analysis and forecasts for the industry.
From Mr. Jia’s insights on the changes in the stainless steel nickel-iron industry chain, we learned that exporting nickel ore from the Philippines to Indonesia has become a new trend, while the supply of local nickel ore and coal resources in Indonesia has tightened. Mr. Jia then used the dry bulk shipping index to demonstrate the trend in shipping costs, pointing out that global port congestion is primarily due to the impact of the El Niño phenomenon on the Panama Canal, which has reduced the passage of dry bulk ships. However, as the drought situation eases, water levels are recovering. Lastly, he used representative data such as dry bulk shipping capacity, ship type growth, global port congestion, container shipping indices, world steel production, and the stock and demand for domestic bulk carriers in Indonesia to provide a comprehensive analysis of the current state and future predictions of the global shipping market.
Following Mr. Jia Qipu’s presentation, Zhuan Sun Xiaopei, Technical Director of Anhui Chaofan Technology Co., Ltd., delivered an excellent speech titled “Leader in Pneumatic Conveying Technology—Efficient, Energy-Saving, and Environmentally Friendly Pneumatic Conveying Systems.”
Anhui Chaofan Technology Co., Ltd. Technical Director Zhuan Sun Xiaopei
Zhuan Sun Xiaopei first introduced Anhui Chaofan Technology Co., Ltd., a leading company in China’s environmental protection and pneumatic conveying sector, dedicated to providing efficient, energy-saving environmental equipment and pneumatic conveying system solutions. He then detailed the company’s products and their application fields, which include various powder materials widely used in steel, thermal power, cement, chemical, new energy, and pharmaceutical industries.
He also discussed the limitations of traditional pneumatic conveying, such as a narrow range of material adaptability, high energy consumption, high failure rates, and short lifespan. Through continuous technological breakthroughs, Chaofan Technology has significantly reduced energy consumption, achieving a gas-solid ratio of 1:100 and reducing energy consumption per ton-meter to 0.66 kW/h.
Finally, he looked ahead to the company’s future development, emphasizing continuous technological innovation to form a competitive advantage. He highlighted the company’s commitment to green and sustainable development and its plans to collaborate with several well-known universities to develop more efficient and energy-saving pneumatic conveying equipment to meet various customer needs.
After Zhuan Sun Xiaopei’s speech, Bai Qiong, Manager of the Nickel, Cobalt, and Cathode Materials Department at Shanghai Steel Union, delivered a compelling presentation titled “Discussion on the Correlation between Lithium Battery Cathodes and Nickel-Cobalt-Lithium Prices and Supply-Demand.”
Shanghai Steel Union Nickel, Cobalt, and Cathode Materials Department Manager Bai Qiong
Development Trends in the Lithium Battery Industry
Bai Qiong began by analyzing the development trends in the lithium battery industry from the perspective of the new energy vehicle (NEV) industry. The NEV market is increasingly dominated by strong players, with significant regional development differences and industry coverage rates, as exemplified by Chinese brands like BYD. The Chinese NEV industry is in a rapid growth phase, with domestic capacity expansion and a notable increase in exports. In 2023 alone, NEV exports reached 1.203 million units, a 77.6% year-on-year increase.
Bai Qiong briefly introduced the existing types of lithium battery models and noted that the overall supply-demand balance in China’s lithium battery cathode material industry is characterized by oversupply. The industry is expected to focus on three major systems: high-nickel ternary, lithium manganese iron phosphate, and solid-state batteries. With the implementation of policies domestically and internationally, the global demand for lithium batteries continues to grow, and lithium iron phosphate and ternary materials will remain the mainstream choices for cathode materials in the coming years.
The competition in the new energy industry is intensifying with the acceleration of development, and the domestic lithium battery industry is currently undergoing a de-stocking cycle, limiting the growth rate of production. The “involution” in the new energy industry will also be driven by price and cost concerns throughout the year.
Current Supply and Demand of Raw Materials: Nickel, Cobalt, and Lithium
Nickel: The nickel industry has matured, and the integration of nickel products has led to an era of nickel surplus.
Cobalt: The future growth potential for cobalt demand mainly comes from the power battery sector, with high supply growth leading to consistently high global refined cobalt inventories.
Lithium: The global distribution and supply of lithium resources are highly concentrated, and salt lake extraction will be the cornerstone of future global lithium resource supply.
Steel Union Price Release
Finally, Bai Qiong emphasized the role of Mysteel as an independent third party providing benchmark prices for commodities. Mysteel has developed over a hundred industry chains, achieving comprehensive coverage of commodities over the past 25 years and aims to continue expanding. Shanghai Steel Union offers comprehensive services through six major products: prices, data, news, analysis, information, and conferences, adhering to the mission of creating value for users through commodity and related industry data. While upholding social responsibility, Shanghai Steel Union’s core “price data” is highly trusted and widely used as a settlement basis for spot transactions. Bai Qiong concluded by discussing the settlement transaction model for the entire nickel industry chain, highlighting that upstream and downstream enterprises are using Mysteel prices/data to build a digital supply chain for the battery industry, achieving comprehensive coverage.
After Bai Qiong’s presentation, Nirmalya Deb from BigMint Technologies Pvt. Ltd. delivered a speech titled “How Will Steelmaking Capacity Expansion in India and ASEAN Impact the Coking Coal Market?”
Following Nirmalya Deb’s speech, Kai Hasenclever, Director of Economics and Statistics and the Long Products Committee at the World Stainless Steel Association, delivered a keynote speech on “Global Stainless Steel Market Outlook.”
World Stainless Steel Association Director of Economics and Statistics and Long Products Committee Kai Hasenclever
Kai Hasenclever first introduced the World Stainless Steel Association, explaining its advantages in supporting the stainless steel market, the industry, and corporate employees. He also introduced various stainless steel projects jointly undertaken by the Ni Institute, IMOA, ICDA, and the World Stainless Steel Association, highlighting the significant achievements of the multi-country stainless steel pipeline project. Using data from national economic barometers, business and consumer confidence indices, and composite leading indicators, Hasenclever analyzed the current macroeconomic situation related to stainless steel and provided a market outlook based on his analysis. Lastly, he briefly explained the global flow and direction of stainless steel, analyzing the market’s operation, and expressed optimism about the future of the stainless steel market.
With the conclusion of the final topic, the 2024 (Third) International Nickel-Chromium Stainless Steel and New Energy Industry Development Conference came to a successful end.
