[Ni] China’s Nickel Apparent Consumption Was 120kt in 1Q

SHANGHAI, May 11 -- According to China Customs, China’s imports of refined nickel were 12.6kt during March, up 28% YoY, and cumulative imports were 32.6kt, down 8% YoY. Output of Chinese stainless steel mills increased significantly in 1Q compared to 4Q 2008, and the prices of imported nickel were lower than domestic nickel, but China’s nickel imports experienced declines in 1Q, indicating the rigid demand for nickel has been weakened in view of sufficient nickel supply.

    China’s NPI imports were 30,381mt during March, up 80% YoY, with average import price of USD 2,602/mt. Cumulative imports were 59,098mt in 1Q, up 165% YoY. NPI imports were 11,774mt from Colombia, 13,686mt from Japan, 1,879mt from France and 2,291mt from New Caledonia during March. As the sales of imported NPI were booming, so the NPI imports will increase sharply in 2009.

    China’s nickel apparent consumption was 120kt in 1Q 2009, up 30% YoY. The nickel apparent consumption increased despite of weak demand for several reasons. A portion of domestic output was the transferred from nickel ore. The nickel ore stockpiles at port remained a major problem for the enterprises, so the nickel ores were processed into NPI or refined nickel so as to stock; since the prices of non-ferrous metal plunged at the end of 2008, the Central Government has carried out the reserve program concerning copper, aluminum, lead, zinc, indium and other metals, so some private speculators purchased nickel, helping form some investment demand.

    (Edited by CBI China)