China Nickel Output Set to Continue Falling in Nov

SHANGHAI, Nov. 12 -- China's nickel output is expected to fall further this month after dropping 6.7% in October on weak demand from the stainless steel sector.

    Nickel output fell 6.7% from the 2009 peak in September to 19,062 mt in October, but remained 41% higher year-on-year, according to national statistics bureau.

    "Stainless steel prices started to decline in end-August and that seriously affected the nickel market," said a nickel analyst in Shanghai.

    Demand has shrunk significantly since September and "the fall in LME price has also put much downward pressure on China's nickel", the analyst added.

    Nickel prices in the Chinese market fell by RMB 1,000-1,250/mt (USD 146-183/mt) on Wednesday to RMB 127,500-128,500/mt, tracking lower LME nickel prices.

    "Nickel output will continue to decrease this month as demand hasn't recovered," said the analyst.

    China produced 176,651 mt of nickel during January-October, up 18% year-on-year, according to the statistics bureau.

    (Source: Metal Bulletin)