SHANGHAI, Sep 25 (SMM) – While plants in north China would face limits in using electricity in the upcoming winter, new capacities in Indonesia are likely to provide some support to high-grade nickel pig iron (NPI) supply in the Chinese market in the fourth quarter of the year, SMM expects.

PT Sulawesi Mining Investment, a joint venture between Indonesia’s Bintangdelapan Group and Chinese steelmaker Tsingshan Holding, and PT Virtue Dragon, Delong Nickel’s NPI project in Indonesia plan to expand their high-grade NPI capacity within this year. This is estimated to grow monthly output by more than 5,000 mt in nickel content.

For domestic mills, Shandong Xinhai plans to commission eight electric furnaces of 48,000-kVA in the fourth quarter and Jinchuan plans to put one electric furnace of 33,000-kVA into operation by the end of this year. This is also set to help bolster high-grade NPI supply in the Chinese market.

Meanwhile, high profit margins encouraged idled capacities to resume operation. The margin could reach 50% at some mills in Shandong.

Domestic output was also recovering as environmental probes wound down. As of September 23, eight NPI plants in Inner Mongolia were in operation with monthly output totaling more than 5,000 mt in nickel content. This compared to only one plant in operation in June with monthly output at about 1,000 mt in nickel content.

Suqian Xiangxiang in Jiangsu resumed the operation of its two electric furnaces of 33,000-kVA after months-long upgrades of an environmentally-friendly system. The plant’s monthly output recovered to 2,000 mt in nickel content from the previous 1,200 mt in nickel content.