SHANGHAI, Jun 8 (SMM) – China’s production of refined nickel continued to fall in May, dipping 2.36%, or 340 mt, from a month ago to 14,100 mt in May, producing a year-over-year gain of 8.99%.
Production at smelters in Gansu declined on the month in May but their output remained higher from the same period last year on the backdrop of stable operation. Amid a favourable production environment, output at Xinjiang smelters rose 10% month the month in May.
Smelters in Jilin and Shandong held their production flat on the month. Output at Tianjin smelters decreased in May, and the smelters may face issues of costs and raw materials in the near term. Smelters in Guangxi have halted production of nickel sulphate and planned to resume output in Q4.
SMM expects China’s refined nickel output to little change from April and May, standing at 14,400 mt in June. Domestic production environment is seen stabilising in Q2 and no adjustments to output targets have been heard from smelters.
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