SHANGHAI, Sept. 17 (SMM) – Prices for high-grade nickel pig iron (NPI) are expected to decline after breaking through 1,000 yuan ($163) per metal unit as London Metal Exchange's nickel prices fell.
The prices for high-grade NPI rose above 1,000 yuan per nickel unit at the end of August on supply shortages, according to Shanghai Metals Market (SMM)’s pricing desk. Continuous price gains have encouraged producers to raise production of the raw material.
At the same time, nickel prices on the LME have fallen about 8% to date from August’s high of nearly $15,000 per tonne.
China produced 33,100 tonnes of high-grade NPI in August, in metal content, 11.5% higher from a month ago as producers in Inner Mongolia markedly increased operating rates on cheaper power costs, according to SMM's research team.
Output of medium-grade NPI climbed 45.5% month-on-month to 1,600 tonnes last month, after Shandong Zouping Huaxin Industry Co. restarted plant closed earlier.
Low-grade NPI output continued to drop month-on-month in August, by 28.1% to 2,300 tonnes.
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