SHANGHAI, Jun 4 (SMM) – Tianrun Special Alloy, a high-grade nickel pig iron (NPI) producer in north China’s Inner Mongolia will suspend production at the end of June, when its existing nickel ore stocks are expected to be depleted, SMM learned.
This is estimated to take 1,700 mt per month of high-grade NPI output offline.
The decision of production suspension came as high costs pushed the producer into losses.
SMM assessed ex-works prices of NPI with Ni 8-12% in Inner Mongolia at 970 yuan/mtu as of Thursday June 4, down 10 yuan/mtu from the peak of the year of 980 yuan/mtu notched in the second half of May.
As of June 4, prices of Philippine laterite nickel ore with Ni 1.5%, cif ports of Tianjin and Lianyungang, were assessed at $43.5/wmt, a high not seen since October 2019. The price was up $8.5, or more than 24% from the recent trough of $35 plumbed in April.