SHANGHAI, Dec 14 (SMM) — China’s refined nickel output increased 1,416 mt from October to 13,700 mt in November, up 11.56% on the month but down 2.73% on the year. The production of smelters in Gansu has recovered to the annual average level, leading to an increase in output by more than 1,000 mt from October or 13.64% on the month. The production of smelters in Xinjiang remained stable from October. The problems of raw materials and capital still weighed on the smelters in Shandong, so output stood at around150 mt. Production at other domestic smelters remain suspended.
China's refined nickel output rebounded 11.56% on the month in Nov
China’s refined nickel output in December is expected to be at around 13,200 mt. Smelters in Gansu can complete the annual output plan with normal production scheduling, so they will not increase production at the end of the year. The production scheduling in melters in Xinjiang and Shandong remained flat from October. Smelters in Jilin are still in suspension amid maintenance, and will not resume production before the Chinese New Year. The production resumption time for smelters in Tianjin and Guangxi are yet to be determined.
Premiums of Jinchuan nickel fell quickly under stabilised supply
Nickel futures strengthened last week. Spot trades turned quiet. Russian nickel prices were offered firmly with limited decrease amid low supply and ample warrants of stable value. Premiums of Jinchuan nickel fell to 2,000 yuan/mt amid stable supply and muted spot trades after boosting nickel prices. Distributors are likely to stockpile according to the demand expectation in January.
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