| Imports of nickel ores and
concentrate by China, the largest consumer of the refined metal, climbed
to a record in May as nickel pig-iron producers ramped up output to meet
demand from stainless-steel makers.
Inbound shipments jumped to 4.19 million
metric tons, according to the Beijing-based customs office. That's a
record, said Xu Aidong, a senior analyst at Beijing Antaike Information
Development Co. Imports doubled from a year ago and were 70 percent more
than in April, according to Bloomberg calculations.
"Nickel pig-iron capacity has increased,"
said Wang Haoyang, an analyst at researcher and data provider Shanghai
Metals Market. "We don't rule out the possibility that nickel pig-iron
production reached a record last month."
Output of the low-cost substitute for
refined nickel in China, the world's biggest stainless-steel producer, may
surge 50 percent this year to 240,000 tons from 160,000 tons in 2010,
Antaike's Xu said on June 9. She expects production capacity to reach
500,000 tons this year, with another 500,000 tons planned over the next
two years.
Baoshan Iron & Steel Co., the country's
second-biggest stainless-steel maker, said today refined-nickel use in
production of the alloy fell to a record low in May as the company used
more nickel pig-iron and scrap. About two-thirds of global nickel
production goes into stainless steel, used to make everything from kitchen
sinks to aircraft-fuel tanks.
Nickel, the worst performer on the London
Metal Exchange this year, has dropped 26 percent from its 33-month high of
$29,425 a ton in February, as users shunned the refined metal for the
cheaper alternative. The nation's least-efficient makers of nickel
pig-iron need about $20,000 a ton to break even, according to Societe
Generale SA. Three-month futures traded at $21,760 a ton today.
Source: China Customs
Related Link: Overview: China Nonferrous Imports, Exports in May 2011 |
