Jinchuan Group Cuts Ex-works Nickel Price by USD 3,663/mt

JINCHUAN, Apr. 29 -- Jinchuan  Group  Ltd., China's largest  nickel  producer,  cut its ex-works nickel price on April 27th by RMB 25,000/mt  (USD 3,662.84/mt) RMB 103,000/mt (USD 15,090.91/mt), according to Jinchuan Group's Web site.

    "Nickel  contracts  on  the London Metal Exchange (LME) tumbled over the last week  due  to weak demand and profit taking.

    Jinchuan Group's price adjustment on April 27 came just as expected to reflect the market," Fan Runze, an industry analyst with Beijing Antaike Information, said.

    "LME nickel  prices are expected to further slide in the next two months to between  USD 10,500/mt and USD 10,800/mt. To stay in line with market prices,  Jinchuan  Group  is expected to further cut its ex-works price to RMB 90,000/mt (USD 13,186.23/mt) in the coming weeks," Fan said.

    The three-month  LME  nickel  contract  price  dropped  by  more than 10 percent over the week ending April 24 to USD 11,430/mt.

    China's  stainless  steel  mills,  the country's major nickel consumers, continue  to  be  affected  by  the downbeat market. Domestic 304-series stainless  steel  prices on the domestic market fell by RMB 300/mt (USD 43.95/mt) last week, according to China CCM.com statistics.

    Jinchuan  Group  previously  hiked  its ex-works nickel price four timesfrom April  13th  to  RMB  128,000/mt (USD 18,753.75/mt) on April 20th, up 40 percent, to mirror the upturn in LME nickel prices.

    (Source: INTERFAX-CHINA)