STEEL NEWS

Nickel pig iron production in China fell by 4.7% in May

China's nickel pig iron output declined in May to 36,100 tonnes in nickel terms (-4.68% mom; +1.31% yoy), according to SMM data released. Production of high-grade nickel pig iron amounted to 28.3 thousand tons (-7.8% compared to April. Production of low-grade material amounted to 7800 tons in terms of nickel (+8.6% compared to April). Due to a decrease in stainless steel production at a number of plants due to high costs and low margins, prices and demand for nickel iron fell in May, which reduced its production, including at integrated steel plants.In June, experts do not expect an increase in the output of nickel iron.Suspended operations in Liaoning and in southern China. The production of nickel pig iron is estimated to be 35,400 tonnes in terms of nickel in June 2022. The output of high-grade pig iron is estimated at 27,600 tonnes. more profitable in Indonesia, Indonesian material can capture part of the Chinese market.In addition, Chinese production of nickel iron can may decrease due to the deterioration in the quality of Philippine nickel ore.