SHANGHAI, Jan 8 (SMM)—China’s NPI output shrank 12.5% from November to 37,300 mt Ni in December. This included 29,800 mt Ni of high-grade NPI, down 15.1% on the month, and 7,500 mt Ni of low-grade NPI, down 0.8% month on month. Shortage of raw materials and weak demand from steel makers drove NPI plants to cut or suspend production in December. A large-scale high-grade NPI plant in east China reduced output by 50%. A low-grade NPI plant in central China suspended production in December on environmental concerns, which led to the slight decline in output. Some steel makers stepped up production of #200 stainless steel due to its improved profits.
SMM expects China’s NPI output to fall 3.1% on the month to 36,200 mt Ni in January. Output of high-grade NPI is likely to shrink 5.6% to 28,200 mt Ni, while that of low-grade NPI to rise 6.8% to 8,000 mt Ni. Low inventories of raw materials and high prices of nickel ore are likely to prompt NPI plants to trim output. Besides, the approaching Chinese New Year holiday and a resurgence of COVID-19 cases in some Chinese provinces will affect transportation of feedstock and supplementary materials.
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