SHANGHAI, Jun 8 (SMM) – Domestic NPI output increased by 5.32% month on month to 35,700 mt (Ni content) in May 2021. Output of high-grade NPI rose 10% to 29,400 mt in metal content, while that of low-grade NPI dropped 12.1% to 6,300 mt in metal content.
The increase in the production of high-grade NPI in May was due to the price increase amid tighter supply in April, and the prices of nickel ore declined amid the increase in imports. NPI plants increased production for wider profit margins.
On the other hand, the profits of 200 series stainless steel were poor, and some plants reduced 200 series production or switched to common carbon steel production. Low-grade NPI at stainless steel plants with NPI facilities dropped sharply, but the plants in Guangxi that had been suspended under environmental protection control have resumed operation.
National NPI output in June is expected to increase 6.24% to 37,900 mt in metal content, with 32,000 mt of high-grade NPI and 5,900 mt of low-grade NPI (both in Ni content).
The output of high-grade NPI is expected to increase in June as most NPI plants will raise operating rates for profits and more new capacities will be put into production. A plant in Guangdong will increase one high-grade NPI production line in June and another line in July, one of which has seen output. The suspended lines in Inner Mongolia will gradually resume production after being rented out. Inner Mongolia and Shandong will also put one new production line into operation respectively in June. Therefore, high-grade NPI output is expected to increase sharply by 9.01% on the month.
The output of low-grade NPI will further decrease as the plants in east and south China continue to switch to produce common carbon steel.
