North China NPI plant suspends output for one month

The nickel market has been volatile recently, followed by the NPI market. With upstream and downstream hard to agree on prices, the transactions were light.

China’s NPI output rose 3.27% from December to 38,600 mt Ni in January. This included 31,600 mt Ni of high-grade NPI, up 5.74% on the month, and 7,000 mt Ni of low-grade NPI, down 6.58% month on month.

SMM high-grade NPI average price on December 4 was 1,030 yuan/mtu (ex-factory, tax included), down 10 yuan/mtu on the week. The purchase prices of high-grade NPI moved between 1,020-1,045 yuan/mtu (delivered to factory, tax included).  The willingness of restocking across steel plants have weakened along with the low stainless steel prices, which had dropped below the costs in all domestic ferronickel plants. This has led to lower transactions amid the ferronickel plants’ low intention of delivery.

China’s NPI output shrank 2.2% from October to 42,700 mt Ni in November.

The government of Fengrun district of Tangshan, China’s top steelmaking hub, has urged local steel companies to tighten production controls between 12:00 CST June 27 and 24:00 CST June 30, in the face of unfavourable weather conditions for dispersing air pollutants.

Tianrun Special Alloy, a high-grade nickel pig iron (NPI) producer in north China’s Inner Mongolia will suspend production at the end of June, when its existing nickel ore stocks are expected to be depleted, SMM learned.

According to a statement by Jiangsu’s ecology and environment department released on February 27, the project, located in Jianhu Shanggang Industrial Park, will be developed in two stages.

Companies which have achieved the emission standards and are in the "positive" list will be exempt from output restrictions amid smog alert.

NPI production from Ulanqab accounted for 7.9% of the nation’s total in Jun

This is likely to keep nickel prices robust, rangebound in short term