Environmental probes in Jun to affect 12.6% of NPI output

SHANGHAI, Jun 14 (SMM) – This round of intensive environmental probes across China in June is likely to affect output of nickel pig iron (NPI) by 5,108 mt in metal content, according to SMM calculations.

This accounts for 12.6% of overall NPI output in April when production was normal.

The probes included environmental reviews of previous rectification works in Jiangsu, Guangdong, Guangxi, Inner Mongolia, Hebei and Henan provinces as well as inspections on illegal dumping of solid waste materials in Guangdong and Guangxi. The environmental reviews would last for one month and were kicked off around the start of this month. When the inspections on solid waste would end remains unknown. We based our calculation on one month.

Affected NPI production in Shandong due to the Shanghai Cooperation Organisation (SCO) Summit was also included in the calculation.

The probes have yet to extend to Fujian province where many plants with integrated production of NPI and stainless steel are located. In May, stainless steel output in Fujian accounted for 31% of overall output across China, SMM research found.

The province’s supply of #200 and #300 stainless steel amounted to 57% and 25%, respectively, of overall production in May. Nickel prices are likely to be under pressure if the environmental probes extend to Fujian.