SHANGHAI Aug. 01 (CBI China)--Domestic nickel prices have dropped 35% since May, and market players were pessimistic for 3Q. Many new capacity nickel projects were delayed due to various reasons, with any decisions for start-up put off until 4Q.
In early July, the Jinchuan Group reported the postponement in start-up of its oxygen-enriched air and top-blown nickel furnace due to delays in delivery of parts. The furnace was scheduled to come online in early July.
Chaoyang Tianma Enterprise Group, located in Liaoning province, reported a delay in the start-up time for its 1,200 mt/yr high-nickel matte project because of technical malfunctions of the transformer. The project was completed in 2007.
Yulin Weinie Science and Techinic Mine Metallurgy postponed its 2nd phase of expansion projects, which were scheduled to start production in 4Q.
Total delayed capacity is approximately 40 kt/yr during 2008. China's output of nickel was 120 kt in 2007.