SMM Analysis Of China Refined Nickel Production In May And Forecast For June

In May, the national refined nickel production totalled 25,700 mt, up 4% MoM and 42.87% YoY, basically in line with expectations. In May, some nickel producers completed equipment maintenance and operated at nearly full capacity. In addition, nickel enterprises that had previously reduced or halted production due to a shortage of raw materials began to resume normal production.

It is expected that the national refined nickel production in June will be 26,200 mt, a significant rebound compared to May. According to the SMM survey, entering June, nickel prices began to show a turning point, fluctuating downward. The corresponding raw material prices followed suit and began to decline. The price gap between the domestic and overseas markets still existed, leading to a continuous increase in the production of nickel enterprises qualified for exports. The newly commissioned nickel plate production at the beginning of 2024 is still in the ramp-up stage. In summary, the refined nickel production in June is expected to increase by 1.95% MoM.