China NPI output declined 4.5% in April

SHANGHAI, May 9 (SMM) – China’s production of nickel pig iron (NPI) fell for a fifth straight month in April, falling 4.49% from March to 38,400 mt Ni, and NPI output was 19.91% lower than the same month a year ago, showed SMM data.

Tight ore supply and a small ferronickel supply surplus forced some large smelters to reduce production of high-grade materials.

Production of high-grade NPI extended its decline, falling 7.33% on the month to 31,300 mt Ni, while that of low-grade materials jumped 10.46% to 7,100 mt Ni as some integrated stainless steel and NPI mills stepped up production of 200-series.

Some NPI producers have recovered production from maintenance or production curbs, which is likely to boost China’s NPI output to 38,700 mt Ni for the month of May, 0.46% higher from April. Output of high-grade NPI is expected to rebound 0.59% to 31,500 mt Ni, while that of low-grade material will increase 0.87% to 7,100 mt Ni.

While a rally in NPI prices improves profits, NPI producers in China struggle to step up production significantly this month due to continued tightness in nickel ore supply, which is caused by lockdowns from global suppliers such as the Philippines.