Fewer working days lower China's refined nickel output in Feb

SHANGHAI, Mar 7 (SMM) – China produced 12,100 mt of refined nickel in February, up 9.32% from a year earlier, but down 0.82% from January, showed SMM data. Fewer working days in February accounted for the month-on-month decline. 

Jilin Jien smelter stabilised its output at 500 mt from February. This offset a loss from the closure of refined nickel production lines at Guangxi Yinyi. 

For March, an increase in the number of working days is expected to buoy domestic output of refined nickel by 6% from February, to 12,800 mt. 

In February, nickel pig iron (NPI) output in China decreased 4.89% from a month earlier to stand at 40,500 mt in Ni content. This was 17.83% higher from February 2018. 

On a month-on-month basis, output of high-grade NPI dipped 4.89% to 37,200 mt in Ni content last month, dragged by fewer working days. Capacity additions at a large NPI mill in Shandong province offset part of the decline. 

For low-grade materials, output dropped 1% from January, to 3,300 mt in Ni content last month.

Overall output of NPI in China is expected to rise 12.62% from February, to 45,600 mt in Ni content in March, with that of high-grade materials up 10.78% to 41,200 mt in Ni content, in anticipation of the continued release of new capacity in Shandong. 

Output of low-grade NPI is likely to climb to 4,400 mt in Ni content this month. 

In February, China produced 9,647 mt in metal content of nickel sulphate, which translated to 43,900 mt in physical content.

Compared to January, production expanded 1.5% despite fewer working days and CNY closure, as some producers expanded capacity at the end of last year and at the start of this year. Those producers included Jinchuan Group, GEM Cooperation, and Ronbay Lithium Battery Materials.

Even as production rose, a shortage remained in the nickel sulphate market as downstream ternary precursor producers stockpiled actively last month. 

For March, new capacity and resumption from CNY is expected to further increase nickel sulphate output, by 8.44% from February.