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| China's Imports Of Nickel Ore In July 2008 Decreased To Half Of That In June |
| = Sharp Fall Of Nickel Price Caused Considerable Reduction On Production Of Ni-Contained Pig Iron |
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According to the customs-statistics released in China, this country imported 531,000 tons of nickel ore in July of 2008, which had a considerable decrease of 55% compared with that (1,179,000 tons) in the previous month of June. The production of nickel-contained pig iron in China once had a boom in the last 2 - 3 years but this production has become unprofitable and, consequently, the producers concerned have been driven to reduce their production to a large extent. Therefore, the phenomenon, which China decreased their imports of nickel ore in July to half of that in June, is an evidence of this reality. The quantities of nickel ore imported by China in the first half of 2008 were <> March : 1,284,000 tons, <> April : 1,995,000 tons, <> May : 2,029,000 tons and <> June : 1,179,000 tons. It was already informed by a major nickel producer of the western world that China is supposed to have stocked approximately 8,000,000 tons of nickel ore as distressed cargoes in June to July of 2008. Because of the factors which nickel price has fallen and price of coke as reducer has steeply risen (US$370 - 450 per ton at present in China), the production of nickel-contained pig iron in China has become unprofitable and, accordingly, the producers concerned are endeavoring to delay or to refuse deliveries of nickel ore under the existing contracts. In consequence of this aspect, the large and excessive stocks of nickel ore have come out in China. China launched from autumn of 2006 to produce nickel-contained pig iron and low grade ferro-nickel by means of utilizing small blast furnaces (idled furnaces) and the output of these nickel-contained products in 2007 reached a scale of 70,000 - 80,000 tons per annum of nickel content. China was once anticipated to produce 100,000 tons per annum of nickel in nickel-contained pig iron in 2008 but, since LME nickel prices have fallen to a lower level than US$10 per lb., many producers in China have been suddenly obliged to suspend their production of nickel-contained pig iron as this production has come to be not payable for its cost. In the first half of 2007 when coke price was comparatively stabilized, the cost to produce nickel-contained pig iron in China was estimated to be US$7 - 8 per lb. of Ni. However, owing to the facts emerged from the beginning of 2008 that coke price has soared and nickel price has fallen to a lower level than US$10, the cost to produce nickel-contained pig iron in China has at once come to be not payable. Under the present situation, the cost for production of nickel-contained pig iron in China has raised to a higher level than US$10 per lb. The main sources to import nickel ore for China are Indonesia and Philippines, and the imports of nickel ore from these two countries into China have shared 94% of the whole. Therefore, it is not negligible that the decreased imports of nickel ore by China will certainly put a substantial influence on the two countries of Indonesia and Philippines, having relied their exports of nickel ore on China. Also, China was in a position to supply 70,000 - 80,000 tons per annum of nickel in nickel-contained pig iron (including ferro-nickel) and, in view of the world demand for nickel which is estimated to be 1,450,000 tons per annum, the supply of nickel-contained pig iron by China has put a cetain pressure on the world market of nickel. Under the circumstances, the decreased production of nickel-contained pig iron in China will make another impact on the world supply of nickel. |
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| last modified : Wed 03 Sep, 2008 [10:51] |
