Sichuan Pingwu Xinlong Electric Metallurgical Company Halts NPI Production Temporarily

SHANGHAI, Jan. 5 -- Sichuan Pingwu Xinlong Electric Metallurgical Company, a high-grade NPI producer in Sichuan province, has suspended NPI production in mid-December 2009. Previously, this producer had monthly output of 1 kt, almost operating at full capacity.

An official from this company said, current electricity prices were high in this region as the low-water period began, so their costs will be high if they maintain normal production, and they will have no profit margins based on current selling prices. He said they may resume production in April 2010.

He also said they will maintain ferrochrome production given current relatively high ferrochrome prices. He remains confident in 2010 NPI market, and believes nickel prices will move higher.

(Edited by SMM)