Finance ministry data showed that Japan's imports of nickel ore from Indonesia jumped 81% YoY in May 2012 as buyers stepped up purchase before the Southeast Asian nation curbed shipments.

The finance ministry data showed that inbound shipments of nickel ore from Indonesia soared to 200,176 tonnes in May 2012 as compared with 110,679 tonnes a year earlier. Japan imported 171,685 tonnes of ore from Indonesia in April 2012. Nickel is used to strengthen stainless steel.

Indonesia, the largest producer, said on May 3rd 2012 that it would ban exports of some raw minerals effective May 6th 2012, with an exception for miners that plan to build local processing facilities. Those miners would be assessed for a 20% tax on ore shipments.

According to finance ministry data, Japan imported 3.65 million tonnes of ore in 2011. Indonesia supplied 1.95 million tonnes or 53%, followed by New Caledonia with 27% and the Philippines with 19%.

Source - Bloomberg

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