In June, China's refined nickel production totalled 26,600 mt, up 3.7% MoM and 40.54% YoY, in line with expectations. Some nickel producers completed equipment maintenance in June, allowing them to operate at nearly full capacity. On the other hand, nickel producers that had previously reduced or halted production due to raw material shortages resumed normal production, releasing capacity smoothly. Additionally, with the persisting price inversion between domestic and overseas markets, the export profit for domestic nickel plates was still substantial. As a result, some refined nickel producers in East China increased their production in June.
It is expected that China's refined nickel production will increase to 30,300 mt in July. According to an SMM survey, nickel prices showed some resilience entering July, with both domestic and overseas markets performing strongly, leading to a continuous increase in the production of nickel producers qualified for exports. On the other hand, the newly commissioned nickel plate capacity at the beginning of this year is still in the ramp-up stage.
