Heavy Snowfall Hampers NPI Transactions

SHANGHAI, Jan. 7 -- The heavy snowfall has disrupted a portion of highway and air transportation, hampering NPI transactions in Shanxi, Shandong, Hebei, Ningxia and Inner Mongolia regions. In the mean time, the rail capacity will become limited as the Chinese New Year holiday is drawing near, and NPI producers in north China said they have difficulties in transporting NPI.

A NPI producer in Ningxia region said both NPI prices and trading volumes increased recently, but transportation bottlenecks hindered NPI transactions. In the mean time, the transportation resistance was greater and the fuel consumption was higher due to heavy snowfall, helping raising transportation costs, and offers for NPI(10 -15%) have reached RMB 1,300/mtu as a result.

In other news, NPI producers in Inner Mongolia also experienced transportation issues, limiting NPI transactions as well. Meanwhile, the freezing weather has exerted negative impact on laterite-nickel ore transportation, load-off and sintering. It is predicted that transportation bottlenecks may improve one week later, and NPI will move more smoothly as well.  

(Edited by SMM)