Chinese Nickel Production to Rise 11% YoY in 2009

BEIJING, May 25 -- Sources report that China's nickel production in 2009 will increase by 11% YoY to 230,000 tonnes and stainless steel production will drop 6% YoY.

    An analyst said that the momentum in Ni production is gained mainly from production increases of China's major Ni smelters such as Junchuan Group Ltd. He further induced that China's stainless steel production in 2009 will drop to less than 6.9 million tonnes lower than last year's 7.34 million tonnes and this as he said was due to the economic downturn.

    He added that "A few stainless steel plants have cut production now, and others have seen their operation rate up to 60%. After this year, China's stainless steel production will rise by 8 to 10%."During the time when Ni price started to fall from the peak in 2007, Ni pig iron plants were heavily impacted. But Mr Jiang Xinfang from Shanghai Tsingshan Mineral Co Ltd said that Ni pig iron still enjoys a promising future.

    He also said that China's Ni pig iron production may drop to 600,000 tons from last year's 700,000 tons.

    (Source: Metal China.com)