Environmental Factor Exerts Limited Impact on NPI Production in Shandong, and Rising Price Grows Production Interest

Published: Aug 23, 2017 10:37 (GMT+8)

Save

In recent days, a new round of environmental protection inspections has started in Shandong, but its impact on local NPI producers is limited.

SHANGHAI, Aug. 22 (SMM) – In recent days, a new round of environmental protection inspections has started in Shandong, but its impact on local NPI producers is limited due to limited number of NPI producers there and, meanwhile, producers in the region are largely equipped with environment-friendly units.

SMM learns that production at Shandong Xinhai Technology and Shandong Shengyang Group is not affected significantly by the checks, and Shandong Weiye Nickel Industry halted production in mid August due to the checks, and its output in August is expected to fall by 50 per cent MoM to 1,000 tonnes.

Bad Weather Affects Nickel Ore Shipments in Philippines

Nickel price has been rising since early July, and on August 22, LME nickel climbed to $11,415 per tonne, the highest since late 2016. Surging price has encouraged high-grade NPI producers, which suspended production, to have already resumed or planned to restart production, especially those having ore inventories on-hand. Meanwhile, some on-line high-grade NPI plants have increased output due to optimistic outlook.

According to SMM preliminary data, high-grade NPI output from production resumption and increment is expected to total 19,950 tonnes or 1,800 tonnes (Ni content) in August, up by more than 1,000 tonnes (Ni content) from July’s, accounting for about 4 per cent of total high-grade NPI output in July.

What’s Raw Material Choice at China Stainless Steel Mills after NPI Shortages and Price Rise? SMM Reports

In early August, ex-works price of low-grade NPI climbed above 3,000 yuan per tonne, and the rising strength is still under way, averaging at 3,400 yuan per tonne so far. The price surge has also stimulated low-grade NPI producers to grow output. According to preliminary data, low-grade NPI output from production resumption and increment is expected to reach 72,000 tonnes in August, up 35,000 tonnes or 596 tonnes (Ni content) from July’s, occupying about 8 per cent of total low-grade NPI output in July.

For news cooperation, please contact us by email: sallyzhang@smm.cn or service.en@smm.cn.

npi price npi output china npi output nickel price

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

9 hours ago

【SMM Nickel Flash】Indonesia Nickel Ore Daily Price Update — September 22, 2026

Indonesian nickel ore delivered to main Indonesian ports: 1.2% Ni: $26.5/wmt, down $0.5/wmt from the previous assessment. 1.4% Ni: $51.8/wmt, unchanged. 1.5% Ni: $58.5/wmt, unchanged. 1.6% Ni: $63.4/wmt, unchanged. Market update: Indonesia's nickel ore market remains focused on the gradual release of additional 2026 RKAB approvals. Some supplementary quotas have started entering the market, but the government has not announced a final national additional quota. Meanwhile, the revised HPM formula effective September 15 has lowered the benchmark for low-grade limonite, with 1.2% Ni HPM at $24.89/wmt, below current market prices.

9 hours ago

10 hours ago

[SMM Nickel Market Flash] Indonesia’s IMIP RKEF Nickel Pig Iron Smelters Cut Operating Rates to Around 30%-40%

According to SMM market research, RKEF Nickel Pig Iron smelters at Indonesia’s IMIP industrial park started reducing production today, with some production lines now operating at around 30%-40% of normal load. Market sources said El Niño-related dry conditions have reduced rainfall and tightened water availability for equipment cooling and protection. If the current operating rate persists for half a month, Nickel Pig Iron output could be reduced by around 50,000-70,000 mt on a physical tonnage basis. Actual operating rates will continue to depend on weather and water supply conditions, and SMM will continue to monitor further developments.

10 hours ago

11 hours ago

SMM Nickel Flash: NPI Market Sentiment Mixed, Upstream Stable and Downstream Slightly Up Ahead of Holiday

[SMM Nickel Flash] On September 22, the SMM high-grade NPI market sentiment factor stood at 1.79, up 0.01 MoM. The upstream sentiment factor for high-grade NPI was 1.84, flat MoM, while the downstream sentiment factor for high-grade NPI was 1.74, up 0.02 MoM. With the holiday approaching, trading sentiment in the NPI market diverged, as some traders opted to withhold offers and suspend quotations, with wait-and-see sentiment intensifying.

11 hours ago