SHANGHAI, Jan. 11 (SMM) –
Lianyungang to Add 100,000 Mt/yr NPI Project
A large company in Jiangsu province will construct 100,000 mt of NPI project and 5,000 mt of refined nickel project at Lianyungang.
It was reported that total investments were around RMB 1.2 billion on two sets of 33000KVA RKEF and 5,000 mt of nickel projects, auxiliary equipments and dock.
Overcapacity to Weigh on Nickel Prices in 2013
LME nickel prices staged most sluggish performance compared with other base metal in 2012 due to global oversupply, consumers’ preference for NPI as an alternative and soft downstream demand. In 2013, with expanding NPI capacity, global nickel will continue be in supply surplus, which will continue to weigh on LME nickel prices.
Sluggish Stainless Steel Market Drives NPI Prices down in 2012
NPI prices failed to rebound at the end of 2012, even though LME nickel prices advanced. SMM believes that the sluggish demand amid bearish performance of stainless steel market is the major reason behind weak NPI prices.
Boosted by implementation of QE3 in the US, LME nickel prices and stainless steel both advanced slightly in August. During November, Greece successfully received bailout fund and China and the US both reported upbeat economic data, which boosted long momentum and sent LME nickel prices higher.