China refined nickel output declined 7.6% in April

SHANGHAI, May 9 (SMM) – China’s production of refined nickel decreased 7.63% to 14,400 mt in April from a month earlier, to produce a year-over-year gain of 14.55%, showed an SMM survey.

Despite stable operations, last month’s production fell from March due to different ways of calculation at some smelters.

Most of nickel smelters maintained stable operations last month: the smelter in Gansu kept its monthly production at 13,000 mt; the smelter in Xinjiang increased its production slightly from the first quarter and will continue such a production plan in May; production at smelters in Jilin and Shandong was steady; the smelter in Tianjin barely changed its production last month but will likely scale back operations due to concerns over raw material costs and profits; the smelter in Guangxi has yet to resume its refined nickel production line.

China’s refined nickel output is expected to increase to 15,100 mt in May, as a rally in nickel prices encourages smelters to maintain stable production following the easing of coronavirus containment measures.

The anticipated increase in production comes despite raw material supply woes at some smelters caused by coronavirus lockdowns outside China.