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Operation resumption grows nickel production by 21% in Oct

iconNov 8, 2018 16:47
Source:SMM
In Oct, China's nickel output gained 21% from Sep as two producers recovered from maintenance

SHANGHAI, Nov 8 (SMM) – In October, China's nickel output gained 21.03% from September as two producers recovered from maintenance. Some 13,200 mt of nickel was produced across China in October, 4.62% higher from a year ago. However, overall output in January-October fell 8.63%  on the year and registered at 119,200 mt.

SMM expects output in November to increase 7.08%, or 936 mt from October, to 14,200 mt as nickel producers step up operation to meet their annual targets. 

Output of nickel pig iron (NPI) in October dipped 2.73% from September to stand at 40,200 mt in nickel content, down 0.93% on a yearly basis. Overall output in January-October came in at 373,800 mt in nickel content, 9.32% higher than the same period last year.

Environmental inspections in Liaoning province and restrictions on electricity use in Inner Mongolia weighed on the output of high-grade materials. There was about 36,300 mt in nickel content of high-grade NPI produced across China in October, down1.5% from September, with 4,500 mt in nickel content of that produced in Inner Mongolia, down 13.73% on the month. In Liaoning, production of high-grade NPI also lost 20.57% to 2,200 mt in nickel content in October. 

Output of low-grade NPI fell by 13.3% from September to 3,900 mt in nickel content as a producer in the south stopped its production of such products from October. 

SMM expects China's overall NPI output to inch up 0.86% to 40,600 mt in nickel content in November as affected output will resume gradually on eased restrictions in Liaoning and Inner Mongolia. Output of high-grade NPI is expected to rise by 1.5% to 36,900 mt in nickel content while that of low-grade NPI is likely to decrease by 5% to 3,700 mt in nickel content.

In October, China produced 8,100 mt, in metal content, of nickel sulphate, which translated to 37,000 mt in physical content. Overall production in January-October stood at 75,900 mt in nickel content, or 345,100 mt in physical content. 

On a monthly basis, production rose 6.15% in October, bolstered by higher output in Guangxi and Hubei provinces. At a plant in Guangxi, eased environmental curbs and greater supplies of raw materials buoyed its capacity utilisation rate to 50%, from some 10% in September. In Hubei, higher demand from downstream precursor plants increased nickel sulphate production. 

We expect output in November to change little from October to stand at 8,200 mt in nickel content.

Production data

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