(under review) [selected in SMM monthly report] National Electrolytic Nickel production increased by 16.03% month-on-month in March stainless steel is expected to remain weak in April

"SMM Nickel Industry chain monthly report", the monthly report SMM will select one of the hot topics, prices, market or major changes in the industry chain information published for your reference.

The following is an excerpt from the monthly report of the SMM nickel industry chain:

The national output of electrolytic nickel in March was 15600 tons, an increase of 16.03% over the previous month, and is expected to decline slightly in April.

In March 2020, the national output of electrolytic nickel was 15600 tons, an increase of 16.03% over the previous month and 21.59% over the same period last year. According to SMM preliminary research, production rose in March, as the domestic rework environment is also more stable and orderly than last month, most of the smelters currently in production are higher than last month. The increase in output was also significantly higher than that in the same period last year, mainly due to many factors, such as the average price of products in the previous quarter, the price of raw materials, and the enterprise plan, etc., and because the fourth quarter of last year was better than in previous years, some smelters in China scheduled production in the first quarter of this year. As a result, the production schedule of some domestic smelters in the first quarter has increased greatly compared with previous years.

From a regional point of view, the Jilin smelter has returned to the capacity release rate of the same period last year and began to produce electrolytic nickel normally. The current production situation of Gansu and Xinjiang smelters is good, and the output is higher than that in February. Due to the continued decline in nickel prices in March, Shandong and Tianjin smelters still maintain low-load production for the time being because of cost considerations. It is reported that although the two enterprises use imported intermediate products as raw materials, they have prepared warehouses for raw materials in the early stage, and will not affect production scheduling for the time being, but there are no plans to expand the operating rate for the time being. The electrolytic nickel production line at the Guangxi smelter is still suspended and is expected to resume in the fourth quarter.

In April, domestic electrolytic nickel production is expected to be 15500 tons, down 0.96 percent from the previous month. The number of natural days in April decreased, and the discharge output of each smelter decreased to a certain extent. However, if the nickel price continues to decline and the epidemic situation abroad continues to worsen, or if the production enterprises using overseas ores and intermediates as raw materials increase cost pressure or lower than expected, the actual output may be lower than expected.

Review and Prospect Analysis of stainless Steel

In March, enterprises across the country gradually resumed work and production, the epidemic situation was brought under control, and the management and control of various localities gradually slowed down, and the transaction situation of stainless steel market was improved to a certain extent compared with February. According to the market reflection, the transaction performance of stainless steel in March can be promoted not only by the gradual improvement of the downstream resumption rate, but also by the centralized release of the backlog of orders in February, which promoted the trading volume of stainless steel. However, compared with February, the improvement in the demand side of the transaction is only compared with February. Compared with the same period, the stock is still weak and the inventory is still high, and the supply is still significantly surplus. Therefore, the price of stainless steel is still in a downward trend in March. As of the reporting day, the rough edge roll price of 304 cold rolling has fallen by 1100 yuan / ton, the average price is quoted at 12250 yuan / ton, and the average price is down 700 yuan / ton, and the average price is quoted at 11850 yuan / ton. The cold rolling coil price fell by 650 yuan / ton, and the average price was quoted at 7000 yuan / ton.

It is expected that stainless steel will remain weak in April. Although the epidemic situation in China has been brought under control to a certain extent, the epidemic situation abroad has spread seriously and is in an explosive period, and the export demand for stainless steel coils and metal products has been greatly restricted. The measures taken by some countries have almost brought the import and export to a standstill, while the supply of steel mills gradually returned to normal in April. The supply reduction is limited, and the demand reduction is serious, so stainless steel will still run weakly. However, at present, the price of stainless steel is already at a low level, and there is limited room for decline.

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[high-end report of China Nickel Industry chain] the monthly report of China Nickel Industry chain includes macro interpretation, review of nickel price within month, interpretation of hot events such as nickel ore, electrolytic nickel, nickel pig iron, stainless steel and ferrochromium, etc., and simultaneous release of monthly relevant enterprise operating rate and inventory research and other data, covering the entire nickel industry chain.

[routine report of China Nickel Industry chain] the Weekly report of China Nickel Industry chain includes macro interpretation, review of nickel prices during the week, market trends such as electrolytic nickel, nickel pig iron, stainless steel and ferrochromium, weekly social inventory and future forecast, and a comprehensive interpretation of the nickel market during the week.