Indonesia Ferro-nickel HS720260 Export Data 2025 June Overview

Indonesia Ferro-nickel (HS 720260) 2025 June Export: Key Takeaways

Indonesia's Ferro-nickel (HS Code 720260) exports in June 2025 reveal extreme reliance on China, which accounts for 94% of volume and value, reflecting uniform product grade and pricing typical of bulk commodities. The market shows high concentration risk, with China dominating as the primary buyer due to its steel sector demand, while smaller shipments to niche markets like the Netherlands and South Korea highlight limited diversification. This analysis covers June 2025 and is based on cleanly processed Customs data from the yTrade database.

Indonesia Ferro-nickel (HS 720260) 2025 June Export Background

Indonesia’s ferro-nickel (HS Code 720260), a key alloy for stainless steel and battery production, drives global demand due to its corrosion resistance. Recent policy shifts, including MOT Regulation No. 9/2025 [PTPSI], tightened export rules for processed minerals, positioning Indonesia—a top nickel producer—as a critical supplier. The June 2025 Indonesia ferro-nickel HS Code 720260 export data reflects this strategic role, especially as China absorbs 99% of shipments [YTrade]. With rising export levies and domestic processing mandates, Indonesia’s trade policies now shape global ferro-nickel markets.

Indonesia Ferro-nickel (HS 720260) 2025 June Export: Trend Summary

Key Observations

In June 2025, Indonesia's ferro-nickel exports under HS Code 720260 reached a value of 1.31 billion USD with a volume of 951.56 million kg, marking a noticeable pullback from the previous month's highs.

Price and Volume Dynamics

The June figures show a month-over-month decline, with value dropping by approximately 18.6% from May's 1.61 billion USD and volume decreasing by about 3.1%. This dip aligns with typical mid-year softening in metals demand, often driven by reduced industrial activity and inventory drawdowns in key sectors like stainless steel manufacturing. The overall 2025 trend has been volatile, with peaks in March and May suggesting intermittent supply chain adjustments rather than a steady downtrend.

External Context and Outlook

Recent policy shifts have intensified market uncertainty. [Updates in Indonesia's Export Policies] implemented export restrictions and new licensing requirements effective January 2025, likely disrupting trade flows and contributing to June's decline (Updates in Indonesia's Export Policies). Additionally, modified export tax rules on minerals (Global Trade Alert) may have prompted exporters to accelerate shipments earlier in the year, exacerbating the mid-year slump. Looking ahead, sustained volatility is expected as policies aim to prioritize domestic processing over raw material exports.

Indonesia Ferro-nickel (HS 720260) 2025 June Export: HS Code Breakdown

Product Specialization and Concentration

In June 2025, Indonesia's Ferro-nickel HS Code 720260 export is entirely concentrated on a single product, 'Ferro-alloys; ferro-nickel', with a uniform unit price of 1.38 USD per kilogram, indicating no variation or anomalies in this specialized bulk commodity trade.

Value-Chain Structure and Grade Analysis

The export structure is monolithic, with all shipments under this HS Code consisting of the same ferro-nickel product, confirming it as a fungible bulk commodity without differentiation in value-add stages or grades, typically traded based on global indices rather than branded or processed forms.

Strategic Implication and Pricing Power

This homogeneity limits Indonesia's pricing power, as ferro-nickel remains a standardized commodity subject to market fluctuations. Recent data shows extreme reliance on China, absorbing 99% of volume and value [ytrade.com], highlighting vulnerability to demand shifts and policy changes, such as Indonesia's 2025 export restrictions (ytrade.com), urging diversification or value-addition strategies.

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Indonesia Ferro-nickel (HS 720260) 2025 June Export: Market Concentration

Geographic Concentration and Dominant Role

Indonesia's Ferro-nickel HS Code 720260 export in June 2025 is overwhelmingly dominated by China Mainland, which accounts for 94.14% of the weight and 93.82% of the value. The close match between value and weight ratios indicates a uniform product grade typical of bulk commodities, with China paying a consistent price per kilogram. This concentration reflects China's role as the primary consumer due to its large-scale industrial demand.

Partner Countries Clusters and Underlying Causes

The export partners form three clear clusters: China as the massive bulk buyer; a mid-tier group including Netherlands, South Korea, and India with smaller, irregular shipments likely for specialized alloy production or re-export; and minimal players like China Taiwan with incidental purchases. China's dominance stems from its steel sector's insatiable need for ferro-nickel inputs, while others may source for specific industrial niches or logistical hubs.

Forward Strategy and Supply Chain Implications

This heavy reliance on China creates significant supply chain vulnerability for Indonesia, as any shift in Chinese demand or policy could disrupt exports. Recent regulatory changes, such as export restrictions starting January 2025 [arma-law.com], emphasize the need for exporters to diversify markets and comply with evolving rules to mitigate risks and maintain trade flows.

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Indonesia Ferro-nickel (HS 720260) 2025 June Export: Action Plan for Ferro-nickel Market Expansion

Strategic Supply Chain Overview

Indonesia Ferro-nickel Export 2025 June under HS Code 720260 operates as a pure bulk commodity. Price is driven solely by global nickel indices and Chinese industrial demand. Supply chain implications are severe: extreme reliance on China creates high vulnerability to policy shifts or demand drops. Indonesia functions only as a raw material supplier with no pricing power.

Action Plan: Data-Driven Steps for Ferro-nickel Market Execution

• Use shipment data to identify and target buyers in secondary markets like India or South Korea. This diversifies reliance away from China.
• Analyze buyer purchase frequency to adjust contract timing. This prevents revenue gaps during demand fluctuations.
• Monitor global nickel price indexes daily to negotiate contracts. This captures optimal pricing windows.
• Track regulatory updates from Indonesian authorities monthly. This ensures compliance with new export rules.
• Develop relationships with low-frequency but high-value buyers. This builds a buffer against order cancellations from major clients.

Take Action Now —— Explore Indonesia Ferro-nickel Export Data

Frequently Asked Questions

Q1. What is driving the recent changes in Indonesia Ferro-nickel Export 2025 June?

The June 2025 decline (-18.6% value, -3.1% volume) reflects mid-year demand softening and policy disruptions, including Indonesia's new export restrictions and tax rule modifications that accelerated earlier shipments.

Q2. Who are the main partner countries in this Indonesia Ferro-nickel Export 2025 June?

China dominates with 94.14% of volume and 93.82% of value, followed by minor shares from the Netherlands, South Korea, and India.

Q3. Why does the unit price differ across Indonesia Ferro-nickel Export 2025 June partner countries?

Unit prices are uniform (1.38 USD/kg) as all exports are standardized bulk ferro-nickel under HS Code 720260, with no grade or value-add differentiation.

Q4. What should exporters in Indonesia focus on in the current Ferro-nickel export market?

Exporters must prioritize relationships with dominant high-value frequent buyers (68.7% of revenue) while diversifying to smaller clusters to reduce China-dependent risks.

Q5. What does this Indonesia Ferro-nickel export pattern mean for buyers in partner countries?

China's bulk buyers benefit from stable supply, but smaller partners face irregular access, highlighting opportunities for niche buyers to secure dedicated contracts.

Q6. How is Ferro-nickel typically used in this trade flow?

It serves as a key input for stainless steel production, traded as a fungible bulk commodity without downstream processing.