SHANGHAI, Aug 8 (SMM) - China produced 16,000 mt of refined nickel in May, up 2.89% MoM and 29.71% YoY. The slight increase in the output in July was basically in line with expectations. The main reason was that orders placed by the alloy military sector increased and the demand for pure nickel increased amid the low SHFE nickel prices. However, as the overall shipment of steel mills was not smooth, the demand for pure nickel further decreased. Therefore, some salt factories suspended the production of refined nickel, but the impact was limited and the output still increased in July.
The output of refined nickel is expected to stand at 16,200 mt in August 2022, up 1.25% on the month and 10.11% on the year. It is expected that the output of refined nickel will still increase slightly in July, mainly because the refined nickel production lines of some salt plants are still being commissioned. Therefore, it is expected that the output will further increase.