SHANGHAI, May 8 (SMM) – China produced 12,600 mt of refined nickel in April, up 5.55% from a year earlier, but down 2% from March, SMM data showed on Wednesday May 8. A fewer number of working days in April accounted for the loss.
Smelters are expected to maintain regular operation in May. A longer month may raise their output of refined nickel by 2.6% from April, to 12,900 mt in May.
In April, nickel pig iron (NPI) output climbed 4.64% from a month earlier to stand at 48,000 mt in Ni content. This was 17.91% higher than April 2018.
On a month-on-month basis, output of high-grade NPI rose 3.2% to 41,700 mt in Ni content last month. Capacity additions at a large NPI mill in Shandong province raised output.
For low-grade materials, output advanced 15.17% from March, to 6,300 mt in Ni content last month. Capacity ramped up at steel plants in the south, and this contributed to the growth.
A slew of NPI producers in the east, north, and south will conduct maintenance in May, and this may drag domestic high-grade NPI output by 1.36% from April, to 41,100 mt in Ni content this month. Resumption from maintenance across steelmakers in the north will expand output of low-grade NPI by 2.29% from April, to 6,400 mt in Ni content in May. Overall NPI output is estimated to fall 0.88% on the month, to 47,500 mt in metal content in May.
In April, China produced 10,813 mt in metal content of nickel sulphate, which translated to 49,200 mt in physical content, up 14.97% on the year.
Compared with March, the production was down 1.4% as operation at a northern producer was affected last month. Tight supply, higher prices of hydrometallurgy intermediate products as raw materials eroded profits at some small plants, and this also accounted for the lower output. Expanding capacity at integrated plants of precursor offset part of the decline in output.
For May, steady release of new capacity and resumption of the northern plant is expected to grow production of nickel sulphate by 4.17% from April.
