Plummeting Nickel Prices Dragged Down Ferronickel Prices in February

SHANGHAI, Mar 21 (SMM) - Trades in the spot ferronickel market in February were dominated by goods from Indonesia and Dominica. Ferronickel prices fell steeply alongside the slump in refined nickel and high-grade NPI prices. As ferronickel was slightly less cost effective than domestic nickel produced with scrap and Indonesian high-grade NPI, its premiums over NPI shrank. In particular, Ni 15-20% ferronickel traded at almost the same price as that of Indonesian high-grade NPI. Due to fierce competition with pure nickel and domestic nickel produced with scrap, the premiums of ferronickel (Ni>35%) fell sharply. However, the premiums of Ni 25-30% ferronickel held relatively firm.