China’s nickel production remains stable in May

SHANGHAI, Jun 10 (SMM) – Production of refined nickel in China held stable in May, rising 2.62% from April to 12,900 mt due to the longer month, showed an SMM survey. Output stood 5.7% higher than May 2018.

With steady production across smelters, output of refined nickel is expected to fall 2.56% to 12,600 mt in June which has fewer working days.

Nickel pig iron (NPI) output declined 0.31% from April to 47,800 mt in Ni content in May, up 28.13% from May 2018.

On a month-on-month basis, output of high-grade NPI fell 1.58% to 41,000 mt in Ni content as the impact of environmental probes in Shandong and Jiangsu at the end of the month and maintenance at plants in the north and south offset higher output at a large plant in Shandong.

For low-grade materials, output grew 8.14% to 6,800 mt in Ni content last month, bolstered by the restart of a plant in the east at the end of April as well as the production recovery from maintenance at northern stainless steel mills.

China’s NPI output is expected to expand 4.59% month on month to 50,000 mt in Ni content in June.

Fewer maintenance works and a reprieve from environmental pressure are expected to boost output of high-grade materials by 5.2% to 43,100 mt in Ni content this month, while the further recovery across the plant in the east and steelmakers in the north is expected to grow output of low-grade materials by 0.94% to 6,900 mt in Ni content.

A low-grade NPI plant in the east switched to other products. This, together with maintenance at southern stainless steel mills, will cap gains in the production of low-grade NPI.

In May, China produced 11,440 mt in Ni content of nickel sulphate, which translated to 52,000 mt in physical content, up 32.15% on the year and 5.8% on the month.

Production recovery at a nickel sulphate plant in the north and the ramp-up of new capacity across a slew of precursor and nickel sulphate plants accounted for the month-on-month gain in output.

Nickel sulphate producers, however, saw disappointing sales last month, due to the upcoming new energy vehicle subsidy cuts and fire incidents. This led to production cuts at some plants with integrated production of precursors and nickel sulplate, and the delay of new capacity construction.

China’s output of nickel sulphate is expected to extend its gains in June, expanding 3.62% month on month to 53,900 mt, in view of a further recovery at the nickel sulphate plant in the north.