China's refined nickel production stood at 21,641 tonnes in July, up slightly by 1.22% from June, and gaining 32.06% year on year (YoY), according to Mysteel survey of 12 sample smelters. The production totaled 128,746 t in the first seven months, an increase of 30.44% from last year.
The operating rates of the sample smelters averaged 92.36%, with a capacity utilization rate of 82.7%.
Source: Mysteel
Apart from Jinchuan nickel whose production dropped fractionally in July, the domestic market remained oversupplied as the production has been aggressive as a whole on high nickel prices through July and as electrowinning nickel production started to ramp up.
Sources: Mysteel, SHFE
Looking ahead over August, the refined nickel production is expected to climb further at 22,230 t, indicating a monthly growth of 2.72% after the nickel smelter in Xinjiang resumed the production. In addition, a Chinese-funded joint venture electrowinning nickel project is expected to commence commissioning in Indonesia in August, with an annual production of 50,000 t after reaching full capacity.
Source: Mysteel
Written by Aggie Hu, huchenying@mysteel.com
