Output of refined nickel, NPI, nickel sulphate rises in Mar

SHANGHAI, Apr 10 (SMM) – China produced 12,800 mt of refined nickel in March, up 4.77% from a year earlier, and up 6.03% from February, SMM data showed on Wednesday April 10. A greater number of working days in March accounted for the gain. 

Smelters are expected to maintain regular operation in April, but a shorter month may lower their output of refined nickel by 2% from March, to 12,600 mt in April. 

In March, nickel pig iron (NPI) output climbed 13.2% from a month earlier to stand at 45,800 mt in Ni content. This was 20.39% higher than March 2018. 

On a month-on-month basis, output of high-grade NPI rose 8.6% to 40,400 mt in Ni content last month. Capacity additions at a large NPI mill in Shandong province raised output. 

For low-grade materials, output advanced 64.1% from February, to 5,500 mt in Ni content last month. Two stainless steel plants in the south resumed production of low-grade NPI, and this contributed to the growth. 

Overall output of NPI in China is expected to extend increase by 3.01% from March, to 47,200 mt in Ni content in April, with that of high-grade materials up 1.56% to 41,000 mt in Ni content, in anticipation of the continued release of new capacity in Shandong. 

Output of low-grade NPI is likely to climb 13.71% from March, to 6,200 mt in Ni content this month, as stainless steel mills in the south release capacity. 

In March, China produced 10,967 mt in metal content of nickel sulphate, which translated to 49,900 mt in physical content.

Compared to February, production expanded 13.68% from the longer month and resumption of nickel sulphate producers after CNY breaks. SMM learned that a producer in Guangdong restarted and contributed to output last month. 

Even as output rose, the nickel sulphate market remained in a tight balance as demand from electric vehicle producers expanded after the release of 2019 new-energy vehicle (NEV) subsidy policies in March. Automakers accelerated production to obtain subsidies before the transition period ends on June 25.

For April, greater production in Guangdong is expected to extend the increase in nickel sulphate output, by 1.2% from March. Lower planned output at a producer in Gansu province will cap growth in supply. Other nickel sulphate plants in China are expected to operate normally in April.