Nickel & Stainless Steel Data Monthly
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Transcript of Nickel & Stainless Steel Data Monthly
y No. 38
Published Monthly by:
Beijing Antaike Information Development Co., Ltd.
Chief Editor: Hannah Zhou (Ms.)
Research Team:
Xu Aidong (Ms)
Fan Runze (Mr.)
Li Yanyan (Ms.)
Liu Yujing (Ms.)
Sales Manager: Xiaofei Yang
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Beijing Antaike Information Development Co., Ltd. makes no
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accept responsibility for any losses or damages arising
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whatsoever to third parties.
©2016 Beijing Antaike Information Development Co., Ltd.
The Most Essential and Authoritative Source for
Chinese Metals Market
INSIDE THIS ISSUE
China Nickel Apparent Consumption........................................................ 1
China Primary Nickel Supply-Demand Balance Unit: tonne .......... 1
Price Trend Analysis ................................................................................... 2
China Primary Nickel Supply ..................................................................... 6
China Primary Nickel Consumption .......................................................... 8
China Primary Nickel Inventory ................................................................. 9
Important Ni Product Import and Export ................................................ 10
Production Cost ......................................................................................... 13
China Newly-built NPI projects ................................................................ 14
Conclusion ................................................................................................. 15
Outlook ....................................................................................................... 17
News ........................................................................................................... 18
Statistics ..................................................................................................... 23
Jun. 2016
No. 61
Nickel & Stainless Steel Monthly, June No.61
1
http://www.antaike.com [email protected]
China Nickel Apparent Consumption
China Primary Nickel Supply-Demand Balance Unit: tonne
2014 2015 Jan.2016 Feb. 2016 Mar. 2016 Apr. 2016
Output of Ni Cathode & Utility 218,392 206,731 15,150 14,550 17,600 16,300
Output of Ni Salts 20,000 18,891 2,500 2,300 2,700 2,900
Output of NPI 471,500 385,035 24,950 22,500 27,956 32,659
Output of Primary Nickel 709,892 610,657 42,600 39,400 48,256 51,859
Import 221,000 437,164 46,032 40,631 54,961 64,643
Apparent Supply 930,892 1,047,821 88,632 80,031 103,217 116,502
Export 107,000 22,732 558 198 731 310
Apparent consumption 9,193,892 1,025,089 88,074 79,833 102,486 116,192
Source: Antaike
Note: The Ni output figure is revised by Antaike based on CNIA figure
Imports include refined nickel (99.95%-99.99%), other refined nickel, nickel powders and flakes and FeNi
According to Antaike Statistics, the primary nickel production was 52,000t in April, while import
of nickel products was 64,000t (Ni content), output was 310t. We expect that the apparent nickel
consumption eas 116,000t in April, up by 14% m/m, and totaled at 386,000t in January-April, up
by 37% y/y.
Nickel & Stainless Steel Monthly, June No.61
http://www.antaike.com [email protected] 2
Price Trend Analysis
Source: Antaike
About the low grade Ni and high grade Fe
nickel ore, Ni:0.6-0.8% nickel ore price
maintained sable in May. Ni:0.9-1.1% ore price
rose by 15 yuan/wmt with small transaction
volumes at ports due to low level stocks. A
Shandong plant purchased Ni:0.9%, Fe:49%
ore at 160 yuan/wmt. Some Ni:0.85%, Fe49%
ore was said be traded at 155 yuan/wmt.
Middle and high grade nickel ore remained
stable in May. The decrease of LME 3-month
nickel price and domestic NPI price slide have
seen the decrease in nickel ore price in
Philippine market, but quotations for spot
goods at port remained few. Shandong port
had 10,000t of Ni:1.85% ore being traded at
320 yuan/wmt, slightly lower than market price.
A northern port had Ni:1.56% ore available for
sale at price of 270 yuan/wmt.
0
200
400
600
800
1,000
1,200
RMB/t China Nickel Ore Price Trend
1.8%-1.9% 2.0%-2.1% 0.9-1.0%
Nickel & Stainless Steel Monthly, June No.61
http://www.antaike.com [email protected] 3
Source: Antaike
In Philippine market, Ni:0.6-0.85 ore
maintained stable with small trading volume.
Ni: 0.9-1.1% ore price decreased by
USD1/wmt. Most of Ni:0.9%, Fe:49% ore were
traded at USD120 FOB/wmt, some were traded
at USD10 FOB/wmt. The Ni:0.9%, Fe:49% ore
at Lianyungang Port and China’s northern ports
were traded at USD18 CIF/wmt.
Middle grade nickel ore price decreased
USD1/wmt in May. Ferronickel plants
substantially lowered buying price of nickel ore
for cost reason following the decrease in the
bidding price for high grade NPI. Ni:1.5% ore
price were concluded at USD31-32 CIF/wmt
earlier in May and some were traded at USD28
CIF/wmt at end of May.
High grade nickel ore price decreased
USD2/wmt in May. The guiding price for
Ni:1.8% ore was not available as Philippines
mines suspended quotations.
0
50
100
150
USD/wmt FOB Trend of Philippine Nickel Ore
1.80% Ni0.6 Fe50 Ni0.9 Fe49
Nickel & Stainless Steel Monthly, June No.61
http://www.antaike.com [email protected] 4
Source: Antaike
In May, the average ex-factory price of high
grade NPI was 753 yuan/nickel unit, up by 38
yuan/nickel unit m/m. The average ex-factory
price of middle grade NPI was 789 yuan/nickel
unit, up by 54 yuan/nickel unit. And low grade
NPI price was 2,140 yuan/t, up by 203 yuan/t
m/m.
TISCO’s bidding price for high grade NPI
was 735 yuan/nickel unit in June, down by 15
yuan/nickel unit m/m, price was higher if
quantity was large. POSCO’s last round of
bidding price was 730-740 yuan/nickel unit,
Delong’s bidding price was determined
according to every single order. Tsingshan
suspended bidding for two months as
Indonesian project shipped back sufficient
ferronickel and is less likely to bid in the future.
Source: Antaike
The average spot price of refined nickel was
68,592 yuan/t, down by 1.4% m/m. JNMC
decreased its ex-factory price of nickel
cathodes by 4,500 yuan/t to 66,500 yuan/t by
the end of May. Premium for spot nickel price
slightly rose to 200-300 yuan/t in end May as
LME 3-month nickel price fell.
50,000
70,000
90,000
110,000
130,000
150,000
170,000
500
700
900
1,100
1,300
1,500
1,700
RMB/t
RMB/Ni unit
China NPI Price Trend
4-6% NPI (L )
10-15% NPI (L )
Changjiang Cash Ni Price (R )
-15,000
-10,000
-5,000
0
5,000
10,000
15,000
20,000
60,000
80,000
100,000
120,000
140,000
160,000 RMB/t
Refined Nickel Price Gap between LME and SH Changjiang
Gap (LME-SHFE) LME-R
SH Changjiang-R
Nickel & Stainless Steel Monthly, June No.61
http://www.antaike.com [email protected] 5
Source: Antaike
Stainless steel price fell unilaterally in May. It
dropped from 13,200 yuan/t in early May to
11,800 yuan/t at the end of May, with average
price of 12,489 yuan/t, up by 4.1% month on
month. Nickel price declined from $9,400/t to
below $8,400/t during the same period. The
price of 304HR represented the same trend
with CR, with average price of 11,750 yuan/t,
up by 3.7% month on month.
Source: Antaike
Domestic high carbon ferrochrome price
increased greatly in May affected by the tight
market supply. Monthly average factory price in
Inner Mongolia was 5,747 yuan/base t, up by
12.9% month on month.
0
5,000
10,000
15,000
20,000
25,000
RMB/t China CR Stainless Steel Price Trend
430/2B L1/2B 304/2B
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
RMB/t China Ferrochrome Price Trend
Ferrochrome price
Nickel & Stainless Steel Monthly, June No.61
http://www.antaike.com [email protected] 6
Source: Antaike
Both chrome ore and ferrochrome prices
increased significantly. Average price of South
Africa 40-42% chrome concentrate stood at
$156/t in May, up by 47% compared with the
$106/t in April. Turkey 42% lump ore averaged
at $190/t, up by 21% compared with the $157/t
in April.
Domestic chrome ore price followed the
rising overseas price in May. Average price of
South Africa 42% powder ore stood at 28
yuan/mtu in May, up by 6 yuan/mtu compared
with April. Turkey 42% lump ore averaged at 42
yuan/mtu, up by 7 yuan/mtu compared with
April.
China Primary Nickel Supply
Source: Antaike
According to Antaike Statistics, China’s NPI
production was 32,700t (Ni content) in April, up
by 17% m/m but down by 8% y/y, returning
back to 30,000t level after half year. In
particular, the high grade NPI production
reached 24,300t, up by 20% m/m but down by
16% y/y, of which RKEF process was 21,800t,
accounting for 89% of total production, electric
furnace process was 2,500t, up by 4% m/m.
The middle grade NPI production continued
decreasing to 300t. The low grade NPI
production was 8,100t, up by 12% m/m.
0
10
20
30
40
50
60
China Chrome Ore Price Trend
South Africa 42% powder ore
Turkey 42% lump ore
RMB/mtu
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
tonne
China Nickel Monthly Output
NPI Ni cathode & utility Ni salt
Nickel & Stainless Steel Monthly, June No.61
http://www.antaike.com [email protected] 7
Source: Antaike
Most of high grade NPI enterprises
maintained stable production, showing that
some large enterprises’ production sharply
increase in March, and there were three to four
producers restarted operation in April with
faster output growth. The operation rate of low
grade NPI increased slightly in April on a
month-on-month basis in Shandong area
where China’s major low grade NPI production
clustered. Besides, some low grade NPI
producers started to produce higher grade
products at Ni:2.5-2.7% .
Stainless steel integrated enterprises’ NPI
production (including high and low grade NPI)
stood at 18,000t in April, accounting for 55% of
NPI production in China, therefore, only
14,700t were left for sale on spot market,
increasing 2,700t than that in March.
In May, the operation rate for high grade
NPI increased by 2% from April to 42%, for
middle grade NPI remained at 3%, and low
grade NPI increased by 3% m/m to 48%. The
prices of middle and grade NPI fell after a mini
rally during May following the destocking of
middle and grade NPI when nickel traders
showed strong wills to reduce inventory.
0 0.5
1 1.5
2 2.5
3 3.5
4 4.5
5
10kt
China NPI Monthly Ouput
High grade NPI Middle grade NPI Low grade NPI
Nickel & Stainless Steel Monthly, June No.61
http://www.antaike.com [email protected] 8
China Primary Nickel Consumption
Source: Antaike
Notes: 2016 data is forecast data
China’s stainless steel output was 2.06Mt in
April, up by 8.9% year on year and 1.4%
month on month. Of which output of 300 series
was 1.08Mt, up by 9.3% year on year and
0.1% month on month; 400 series 370kt, up by
11.3% year on year and 1.8% month on month;
200 series 610kt, up by 6.9% year on year and
3.5% month on month.
Price rise of raw material was weaker than
stainless steel products in April, so stainless
steel plants had excellent profit. Traders want
to order more from steel mills in hope to
accelerate inventory turnover and gain more
profit; downstream users were also willing to
increase inventory when price increased,
which combined to push up stainless steel
output in April.
The ramp up of high quality capacity will be
accompanied by the elimination of outdated
capacity in 2016 due to the steadily recovered
demand.
It is estimated stainless steel output will
remain high in May.
Note: there are some corrections of
stainless steel output in March: total output
was 2.03Mt, of which 300 series 1.075Mt, 200
series 595kt and 400 series 362kt.
0%
20%
40%
60%
80%
100%
China Stainless Steel Ratio Output by Various Series
200 series 300 series 400 series 401 series
Nickel & Stainless Steel Monthly, June No.61
http://www.antaike.com [email protected] 9
China Primary Nickel Inventory
Source: Antaike
By the end of May, the total nickel ore
stocks at 12 Chinese ports reached
12,850,000t, increasing 150,000t from end
of April, including 10,900,000t of Philippine
ore, and 1,950,000t of Indonesian ore.
Medium and large scale enterprises mainly
bought Philippines nickel ore futures.
Philippines futures price decreased
following the slide in domestic middle and
high grade NPI prices.
Chrome ore port inventory reached
1.33Mt in late May, down by 150kt
compared with the 1.62Mt in late April, of
which Lianyungang was 330kt, down by
170kt year on year; Tianjin port 630kt, up
by 50kt, Zhanjiang port 120kt, down by
70kt. The low chrome ore inventory was
bad to ferrochrome plants in arranging
production. Chinese buyers became very
passive when price rose. Foreign investors
had the confidence to pull up chrome ore
futures price sharply.
0
500
1,000
1,500
2,000
2,500
3,000
10kt
China Nickel Ore Stockpile
Tianjin Lianyungang Rizhao
Lanshan Jingtang Yingkou
Tieshan Fangchenggang Caofeidian
Dafeng Dongjiakou Lanqiao
0
50
100
150
200
250
300
China Chrome Ore Stockpile
Lianyungang Zhanjiang Fangcheng
Shanghai Tianjin
Nickel & Stainless Steel Monthly, June No.61
http://www.antaike.com [email protected] 10
Important Ni Product Import and Export
Source: Antaike
According to China Customs Statistics,
China imported 1.368mt of nickel ore, down
by 55.6% y/y and down by 8.38% m/m, of
which, Philippine laterite nickel ore was
1.26mt, down by 10% m/m. The nickel or
import totaled 4.53mt in January-April, down
by 34% y/y. Even though Philippines
switched to middle grade nickel ore as major
imported product from previous low grade
nickel ore, most of Philippine mines reduced
supply of middle grade ore as the LME
3-month nickel price lingered below
USD9,000/t for a long time.
The largest nickel ore importers in April
included Fujian Daxing Imp.& Exp. Co., Ltd,
Baosteel Desheng Stainless Steel Co., Ltd,
Hualun Jingchuou Co., Ltd, Beijing
Uni-Construction Logistics Co., Ltd and
Guangxi Fanhai Commerce Co., Ltd in
sequence.
0 1 2 3 4 5 6 7 8 9
MT China Nickel Ore Import by Countries
Indonesia Philippines Others
Nickel & Stainless Steel Monthly, June No.61
http://www.antaike.com [email protected] 11
Source: Antaike
The nickel ore ocean freight for China in
May increased from April. Philippines
(Surigao) ocean freight to Lianyungang port
was USD5.7 and to Tianjin port was
USD6.2, while the ocean freight from
Zambales to Lianyungang port was USD4.7
and to Tianjin port was USD5.2.
Source: Antaike
Chinese nickel intermediate products
import totaled 28,781 tonnages in April,
2016,up by 30.6% y-o-y.
2
4
6
8
10
12
14
16
18 USD/wmt
Philippines/Indonesia Ocean Freight for China
North Philippines North Indonesia
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
tonne China Nickel Intermediate Products Import
Nickel & Stainless Steel Monthly, June No.61
http://www.antaike.com [email protected] 12
Source: Antaike
We suggest that the import of refined
nickel is promising in May. According to
China Customs Statistics, China imported
49,000t of unwrought nickel in April, surging
169% over the same period last year, and
the amount totaled at 158,000t in during
January-April, up by 271% y/y. By the end of
May, nickel stocks at China’s bonded
warehouses increased by 6,000t to 81,000t,
and the total stocks in China increased by
nearly 30,000t from April to around
240,000t. Most of imported nickel was not
consumed by downstream enterprises.
Source: Antaike
According to China Customs Statistics,
China imported 107,200t of ferronickel in
April, up by 42.6% y/y and up by 59.1%
m/m. Of the total import 84,000t was
imported from Indonesia, including 82,000t
from Tsingshan project, 8,650t from New
Caledonia, 6,556t from Brazil and 5,042t
from Columbia. Tsingshan project in
Indonesia reached monthly production of
80,000 physical tons since Phase II put into
production in April, which were totally
shipped back to China for the production of
Tsingshan’s enterprises.
0
10,000
20,000
30,000
40,000
50,000
60,000
tonne China Refined Nickel Import & Export
Import Export
0
20,000
40,000
60,000
80,000
100,000
120,000
tonne China Ferronickel Import
Nickel & Stainless Steel Monthly, June No.61
http://www.antaike.com [email protected] 13
Source: Antaike
According to China Customs Statistics,
China imported 107,200t of ferronickel in
April, up by 42.6% y/y and up by 59.1%
m/m. Of the total import 84,000t was
imported from Indonesia, including 82,000t
from Tsingshan project, 8,650t from New
Caledonia, 6,556t from Brazil and 5,042t
from Columbia. Tsingshan project in
Indonesia reached monthly production of
80,000 physical tons since Phase II put into
production in April, which were totally
shipped back to China for the production of
Tsingshan’s enterprises.
China exported 349,400t of stainless steel
in April, rising by 4% month on month and
16.5% year on year. Of the export
destination, Taiwan ranked the top with
87,600t, followed by South Korea 55,000t,
Vietnam 35,000t, Italy 26.4kt, India 25.4kt,
and Thailand 21kt.
Production Cost
Source: Antaike
Based on Ni:1.5% ore at 230 yuan/t,
NPI cost in Jiangsu reached USD11,600/t,
equivalent to 958 yuan/nickel unit; Inner
Mongolia NPI cost reached USD10,100/t,
equivalent to 780 yuan/nickel unit.
Shandong RKEF cost (self-generation
power plant) was USD8,850/t, equivalent to
680 yuan/nickel unit. Considering raw
material price and steel mill’s current bidding
price at 735-740 yuan/nickel unit, most of
NPI plants in China began to gain slight
profit.
0 5
10 15 20 25 30 35 40 45
10kt
China Stainless Steel Import & Export
Import Export Net export
0 20000 40000 60000 80000
100000 120000 140000 160000 180000
RMB/t China NPI Cost by Regions
Jiangsu Inner Mongolia Fujian RKEF
Nickel & Stainless Steel Monthly, June No.61
http://www.antaike.com [email protected] 14
China Newly-built NPI projects
China’s ferronickel projects in Indonesia are expected to produce 104,000t of ferronickel in
2016, increasing 80,000t than that of 2015, thanks to the Phase II of Tsingshan project whose
annual production increased by 56,000t from 2015 to 80,000t in 2016. In April Tsingshan project
shipped 82,000t of ferronickel to China.
Besides, a 300,000t/y ferronickel alloy project in Sulawesi invested by Jiangsu Dafeng Haebor
was being constructed in two phases. Phase I was invested by USD60 million to install traditional
production line with annual capacity of 135,000-150,000t/y, and Phase II was invested by
240million yuan to install independent R&D low temperature reduced new production line to
reach 150,000-157,000t/y capacity.
Nickel & Stainless Steel Monthly, June No.61
http://www.antaike.com [email protected] 15
Conclusion
The LME 3-month nickel price snapped a downside shot in May falling from a year-high of
USD9,700/t to USD8,300/t losing all the 10% rise in April in response to series of bad news in
macroeconomic condition, including the frequent Hawkish statement from FED, the great
possibility of raising the interest rate and the increase of USDX. In fundamental conditions, the
stainless steel production ramping up in May is recommended to have limit stimulus in nickel
consumption as the blocked downstream circulation of stainless steel picked up market stocks,
which attracted the focus of attention on supply side rather than demand side, even though
nickel consumption slightly improved when steel mills lowered offer price for destocking. The
LME 3-month price may cease the slump at the end of May when news released that some steel
mills would idle for maintenance.
The LME stocks declined 14,694t from 427,438t in end April to 402,744t at the end of May.
While SHFE stocks increased by 12,604t to 96,491t during the same period. An obvious material
movement from LME to SHFE stood total amount at 499,235t only 2,090t decreased. Most of the
transfer was Norilsk refined nickel that occupied almost all of LME warehouses previously and
now declined to 40% since it was deliverable against SHFE contract without premium and
discount. Currently most of SHFE stocks are Norilsk nickel.
According to statistics data from foreign institution, global nickel stocks reached about
1,000,000t including registered warehouse stocks at Exchanges and other stocks, which could
afford six-month consumption. Therefore, given NPI plants’ curtailment contributed into shortage
of supply and demand from stainless steel market was strong, the high nickel inventory will delay
the rally of nickel market to 2017. We are expecting that nickel price will move at lower bottom in
the coming seasonal slack period.
Premium for imported refined nickel maintained stable, but the growing anticipation of
the appreciation of U.S dollars that further exacerbated the depreciation anticipation of
China Yuan substantially dragged down the medial rate of Yuan against U.S dallar by
300 point, hitting a five-year new low, which may sharpen the capital outflows or help
narrow the loss of imported nickel.
JNMC’s refined nickel production decreased by 1,000-1,500t m/m in April and the
downward trend continued in May due to the tightness in ore supply. Xinjiang Xinxi
Mining Co., Ltd had stable production at about 900t in May, similar with that in April.
Xinxin conducted maintenance since end May and expected to finish in end July.
By the end of May, domestic NPI stocks stood at 15,000t (Ni content), decreasing 500t
from April, of which high grade NPI stocks were 13,400t, down by 100t m/m, middle
grade NPI stocks were 1,400t, down by 400t m/m, and low grade NPI stocks remained
Nickel & Stainless Steel Monthly, June No.61
http://www.antaike.com [email protected] 16
stable at 200t.
By the mid of May, stainless steel inventory on Wuxi and Foshan markets, the main
two transaction markets in China, amounted to 314,000t, down by 12.8% year on year, of
which 300 series was 226,600t, up by 9.6% year on year; 200 series 45,200t, rising by
19.9% year on year; 400 series 42,200t, increasing by 23.8% year on year. Proportion of
the above three products was 72%, 14% and 14% respectively.
Ferrochrome output was 1.13Mt during the first four months, down by 6.6% year on
year; total import was 750kt, down by 17% year on year; stainless steel output was
7.35Mt during Jan.-Apr., up by 5.3% year on year, of which 300 series output was 3.77Mt,
up by 9% year on year. 300 series consumed more ferrochrome compared with 200
series and 400 series. Total ferrochrome consumption was 2.19Mt. Antaike calculates
ferrochrome shortage is 240kt, and inventory was 260kt during Jan.-Apr. Market was in
severe unbalance in May.
Although ferrochrome output increased by 15% month on month in May, the demand
gap was filled by import. It is predicted market will become calm in June.
China imported 164,800t of high carbon ferrochrome in April, down by 29% month on
month, according to Customs.
A stainless steel plant in south region just imported 6,000t, equivalent to just 1/10 of
the amount in March, all from Zimbabwe. It is reported that there was port congestion in
South Africa, thus materials from the country will be delayed. Import of TISCO was 24kt,
all from Kazakhstan; LISCO imported 31,500t, all from South Africa; POSCO
(Zhangjiagang) imported 10,000t, both from India and South Africa; Fujian Xingda’s over
40kt was from South Africa and India.
Nickel & Stainless Steel Monthly, June No.61
http://www.antaike.com [email protected] 17
Outlook
According to statistics, the shipment from Philippines substantially increased to more
than 100 ships in May. The import of nickel ore will increase on a month-on-month basis.
High grade NPI output was reduced by about 50% as stainless steel mills and NPI
plants temporally shut down for electricity upgrading in Yangjiang Region that will last for
20 days. But some large enterprises may increase production combining with those who
resumed production; it is possible that high grade NPI production may slightly grow in
June. Meanwhile, low grade NPI may continue increase as environmental protection
renovation in Shandong had little impact on production in June.
The high-stocked stainless steel inventory contributed by blocked downstream
demand had negative impact on nickel market.
Stainless steel price declined in May mainly because of the falling nickel price. The
weak price in June will be benefited from the significant rising bidding price of
ferrochrome.
Ferrochrome price will keep high thanks to the strong chrome ore price and
weaker-than-expected ferrochrome supply.
Nickel & Stainless Steel Monthly, June No.61
http://www.antaike.com [email protected] 18
News
8mt of ferronickel
produced by
Tsingshan Indonesian
project in April
It is informed by Indonesian Tsingshan Industrial Park, SMI and
GCNS projects, the first two constructed projects in the Park hit the
record high of production again at 8mt in April and delivered them all
to China for self-production, which means the SMI and GCNS have
reached full capacity and reached record high export. Meanwhile,
the third project ITSS in the Park was constructed systematically as
planned and will put into operation in end 2016 when realizes
ferronickel capacity of 1.6mt (1.6mt of nickel metal).
JNMC decreases
nickel production in
May
Affected by nickel ore shortage since April, Jinchuan Group Co.,
Ltd decreased production by 1,500-2,000t to around 13,000t in April
compared to 13,500-14,000t in March, and the decrease may
continued to May.
Nickel sulfide ore suspension in Australia and Brazil tightened the
supply to JNMC. What’s worth JNMC’s owned No.1 mine was still in
a shorter shutdown. Nickel demand increased to peak during March
and April period, and May sales is expected to maintain stable or
slightly fall.
China levies a
resource tax on nickel
ore based on price
since May 7
Ministry of Finance (MOF) and State Administration of Taxation
(SAT) jointly issued Announcement of Comprehensively Advancing
Resources Tax Reform on May 10, which will take effects on July 1,
2016.
According to the announcement, China will levy resources tax on
21 species resources and other metals based on sales value
instead of quantity. The 21 species resources include iron, gold,
copper, bauxite, lead & zinc mine, nickel, tin, plumbago,
Diatomaceous earth, kaolin, fluorite, limestone, pyrite, phosphorite,
kalium Chloratum, potassium sulfate, well and rock salt, lake salt,
salt by extracting subsurface brine, Coalbed Methane and sea salt.
The resources tax rate on nickel ore will be at 2-6%. The
announcement stated that government at all levels should
determine local tax rate that is applicable to local condition as
Nickel & Stainless Steel Monthly, June No.61
http://www.antaike.com [email protected] 19
required with full consideration of local resource reserve,
affordability of enterprises and minus of fees according to the
resources tax and mineral resource compensation fees that local
enterprises have paid in previous years and the mineral product
prices.
Data indicate that the quantity based resources tax on nickel ore
that started from November 1 , 2011 were levied at 12 yuan/t for
grade II covering JNMC Mine II and JNMC Longshou Mine, at 11
yuan/t for grade III and 10 yuan/t for grade IV covering Jien Nickel,
and 9 yuan/t for grade V ore that involved Hualong county mine.
A Liaoning high grade
NPI plant plans
operation in June
A high grade NPI plant located in Jincheng city, Liaoning that start
construction of 2 sets of 33,000kva electric furnace plans to put into
operation in June. It is said that the plant was advancing smoothly
and it has purchased some nickel ore for the operation.
A Hebei NPI plant
maintenance BF
A blast furnace (BF) operating NPI plant located in Tangshan city,
Hebei, overhauled its one set of 65m3 and one set of 128m3 blast
furnace recently. The plant mainly conducted the operation of middle
and low grade NPI.
A NPI plant in
Shandong reopens
A NPI plant in Linyi city, Shandong plans to resume its ones set of
blast furnace recently. The plant that owns one set of 158m3 blast
furnace and two sets of 25,500kva RKEF electric furnace previously
produced high and middle grade NPI and suspended production
since Q1, 2015 due to environment protection restriction and weak
market.
A high grade NPI plant
in Jiangsu plans to
restart
A high grade NPI plant in Lianyungang city, Jiangsu that owns 8
sets of 4,300kva RKEF electric furnace and idled operation since
end 2015 is said to plan resuming production of high grade NPI in
June.
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A low grade NPI plant
in Liaoning will
resume production
A low grade NPI plant in Jinzhou city, Liaoning province has
prepared for reopen and will resume operation in late May. The plant
mainly conducted the production of low grade NPI previously owning
one set of 300m3 blast furnace, and it idled the furnace before.
A middle grade NPI
plant expands EF
operation
A middle grade NPI plant located in Jinzhong city, Shanxi province
previously operated one set of 12,500kva electric furnace (EF) and
one set of 25,000kva EF for middle grade NPI production. Recently
it is said that it reopened its idled four sets of 12,500kve EF to
produce Ni:4-6% NPI.
A high grade NPI plant
in Jiangsu to reopen
in June
A high grade NPI plant in Lianyungang city, Jiangsu that owned
eight sets of 43,000kva RKEF electric furnace is said to plan to
reopen its operation that suspended since the end of 2015 since
early June.
A newly-built NPI plant
in Inner Mongolia for
resale
A high grade NPI plant in Inner Mongolia with one set of
newly-built 25,000kva electric furnace is looking for buyer.
South32 increases
1.16% nickel
production in Q1
South32, a subsidiary of BHP Billiton, produced 8,700t of
ferronickel in the first quarter of 2016, up by 1.16% m/m. Its Cerro
Matoso mine decreased ferronickel production by 7.5% y/y from
10,587t to 9,807t during the same period.
A Liaoning high grade
NPI plant plans
operation in June
A high grade NPI plant located in Jincheng city, Liaoning that start
construction of 2 sets of 33,000kva electric furnace plans to put into
operation in June. It is said that the plant was advancing smoothly
and it has purchased some nickel ore for the operation.
JNMC decreases nickel
production in May
Affected by nickel ore shortage since April, Jinchuan Group Co.,
Ltd decreased production by 1,500-2,000t to around 13,000t in April
compared to 13,500-14,000t in March, and the decrease may
continued to May.
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Nickel sulfide ore suspension in Australia and Brazil tightened the
supply to JNMC. What’s worth JNMC’s owned No.1 mine was still in
a shorter shutdown. Nickel demand increased to peak during March
and April period, and May sales is expected to maintain stable or
slightly fall.
8mt of ferronickel
produced by Tsingshan
Indonesian project in
April
It is informed by Indonesian Tsingshan Industrial Park, SMI and
GCNS projects, the first two constructed projects in the Park hit the
record high of production again at 8mt in April and delivered them all
to China for self-production, which means the SMI and GCNS have
reached full capacity and reached record high export. Meanwhile,
the third project ITSS in the Park was constructed systematically as
planned and will put into operation in end 2016 when realizes
ferronickel capacity of 1.6mt (1.6mt of nickel metal).
Fengzhen city 1.00Mt
stainless steel project
is ongoing smoothly
Fengzhen city’s 1.00Mt stainless steel project, which was
invested by Inner Mongolia Shangtai Industrial with 4.8bln yuan, is
currently ongoing smoothly.
The first stage project, with investment of 2.8bln yuan, had 6 sets
of 36000KVA ferronickel furnace, refining furnace and 1.25m
wideness stainless steel billet production line, which was completed
and operated in October 2014.
The second stage project, with investment of 2bln yuan, plans to
be operated in October 2016.
The project will produce 600kt of ferronickel, 1.00Mt of stainless
steel after it is completed, and meanwhile achieve 15bln yuan of
annual output value and 1.5bln yuan of pre-tax profit, and offer
2,000 job opportunities.
Shandong Hongwang
Industrial starts
constructing a CR
stainless steel project
Shandong Hongwang Industrial started constructing the second
stage project of the 1.20Mt CR stainless steel project, which was
designed by BERIS Engineering and Research Corporation.
The project will build 1450mm wideness stainless CR production
line, which will produce 600kt of stainless CR coil.
Nickel & Stainless Steel Monthly, June No.61
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Brief report of an
eastern steel plant
bidding price
A steel plant in eastern China released its high carbon
ferrochrome price at 6,850yuan/50 base ton, increasing by 900yuan/
50 base ton m-o-m, bid amount will be 1,500t. Price of low carbon
ferrochrome was 11,976yuan/ 60 base ton, up by 816yuan/ 60 base
ton, bid amount will be 300t. Price of micro- carbon ferrochrome was
12,850yuan/60 base ton, rising by 1,250yuan/ 60 base ton, bid
amount will be 120t.
Qingdao exports 502kt
steel products from
Jan.-Apr.
According to Qingdao Customs, Qingdao exports 502kt steel
products from January to April, up by 47.7% y-o-y. Exports in April
reached 116kt, increasing by 37.5% y-o-y and up by 12.7% m-o-m.
Besides, Qingdao exported 199kt steel bar and 187kt steel plate in
the first four months.
Guizhou Zhenbang
resumes it high carbon
ferrochrome
production
Guizhou Zhengbang Renewable Resource Utilization Co., Ltd
completed the overhaul of its high carbon ferrochrome electric
furnace and resumed production. The company has one set of
electric furnace with daily output around 90t.
Nickel & Stainless Steel Monthly, June No.61
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Statistics
Imports and Exports of Ni Products in Apr. 2016
Commodity Quantity in Apr.
2016
Quantity in
Jan.-Apr. 2016
Y-o-Y
Jan.-Apr.
Value in Apr.
2016
Value in
Jan-Apr. 2016
Y-o-Y
Jan.-Apr.
Import t t % USD USD %
Nickel mattes 31,576 104,255,887 15.45% 53,440 209,504,483 -45.90%
Refined Nickel 48,592 155,227,970 269.29% 431,575 1,378,133,258 121.03%
Ni semis 1,231 4,179,822 -3.23% 30,660 128,057,067 -13.06%
Other products 170 653,505 3.75% 10,621 49,210,895 -10.62%
Export
Nickel mattes 0 0 -100.00% 0 0 -100.00%
Refined Nickel 310 1,798,401 -85.97% 3,068 18,416,246 -92.29%
Ni semis 300 1,246,519 18.82% 8,404 34,017,711 3.38%
Other products 54 204,699 10.03% 2,574 10,474,061 18.22%
Note: 1. Figures are provided by China Customs.
2. All Imports/exports of commodity are in physical weight.
Ferrochrome Bidding Prices of Baosteel, TISCO and JISCO Unit: yuan/50 base ton
Date Baosteel TISCO JISCO
Jun. 2015 6,400 6,200 6,400
Jul. 2015 6,350 6,150 6,150
Aug.2015 6,300 6,050 6,200
Oct.2015 6,150 5,950 6,150
Oct.2015 6,150 5,950 6,150
Nov.2015 6,000 5,700 -
Dec.2015 5,620 5,420 5,417
Jan.2016 4,960 4,780 4,998
Feb.2016 4,680 4,680 4,680
Mar.2016 4,680 4,680 4,680
Apr.2016 4,780 4,680 4,680
May.2016 5,300 5,200
Jun.2016 6,280 6,180 6,180
Source: Antaike
Note: 50% chrome content and payment by cash to the factory
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Chinese Nickel Ore Stockpile at 12 Main Portsides in 2015-2016 Unit: kt
Date Tianjin Lianyungang Yingkou Rizhao Lanshan Tieshan Fangcheng Jingtang Caofeidian Dafeng Dongjiakou Lanqiao Total
May.8 3,000 3,700 1,300 1,150 1,550 2,800 150 1,050 300 250 300 1,450 17,000
May 15 3,050 3,400 1,450 1,100 1,500 2,800 100 900 300 250 250 1,300 16,400
May 25 3,000 3,400 1,350 1,100 1,550 2,600 150 950 350 250 250 1,300 16,250
May 29 3,000 3,350 1,400 1,100 1,500 2,700 150 1,000 300 250 250 1,250 16,250
Jun. 5 3,050 3,400 1,450 1,100 1,500 2,800 100 900 300 250 250 1,300 16,400
Jun.12 2,950 3,450 1,450 1,050 1,500 2,800 50 850 300 200 200 1,350 16,150
Jun.19 3,000 3,500 1,550 1,100 1,500 2,800 50 900 350 200 150 1,300 16,400
Jun.26 2,700 3,500 1,500 1,050 1,500 2,700 100 900 400 200 150 1,300 16,000
Jul.3 2,450 3,300 1,500 1,000 1,450 2,600 100 850 300 200 150 1,250 15,150
Jul.10 2,400 3,250 1,450 950 1,450 2,700 300 850 200 200 150 1,000 15,000
Jul.17 2,400 3,400 1,400 950 1,450 2,600 400 800 200 200 150 1,000 15,500
Jul.24 2,350 3,450 1,400 900 1,400 2,600 400 1,000 200 200 150 1,300 15,350
Jul.31 2,350 3,300 1,450 950 1,400 2,600 350 1,150 250 150 150 1,400 15,550
Aug.7 2,650 3,350 1,700 950 1,400 2,650 350 1,150 250 150 150 1,150 15,000
Aug.14 2,700 3,150 1,700 1,000 1,400 2,700 350 1,200 250 150 150 1,200 15,500
Aug.21 2,700 2,900 1,700 1,000 1,400 2,850 400 1,150 250 150 150 1,300 15,950
Aug.28 2,700 3,000 1,700 950 1,550 2,950 400 1,150 250 150 150 1,250 16,200
Oct.4 3,000 3,100 1,700 900 1,6500 3,000 400 1,150 200 150 150 1,450 16,900
Oct.11 3,000 3,100 1,750 900 1,600 3,000 300 1,100 200 150 150 1,450 16,700
Oct.18 2,850 3,050 1,800 900 1,700 2,800 300 1,100 200 150 150 1,450 16,450
Oct.25 3,000 3,100 1,750 900 1,600 3,000 300 1,100 200 150 150 1,450 16,700
Oct.9 2,800 2,800 1,650 850 1,650 2,800 300 950 200 150 150 1,500 15,200
Oct.16 2,100 2,700 1,700 900 1,600 2,700 300 850 200 150 150 1,400 14,750
Oct.23 2,050 2,700 1,750 800 1,600 2,700 300 850 200 150 150 1,300 14,550
Oct.30 2,000 2,800 1,750 850 1,600 2,800 300 850 200 150 150 1,300 14,750
Nov.6 2,100 2,850 1,850 850 1,650 2,800 250 850 200 150 150 1,300 15,000
Nov.13 2,200 2,700 1,900 850 1,600 2,850 250 800 200 150 150 1,250 14,900
Nov.20 2,300 2,700 1,900 850 1,550 2,800 250 750 200 150 150 1,200 14,800
Nov.27 2,300 2,750 1,900 850 1,550 2,850 250 700 200 150 150 1,200 14,850
Dec.4 2,350 2,800 1,950 850 1,550 2,850 250 700 200 150 150 1,200 15,000
Dec.11 2,400 2,600 1,900 800 1,550 2,850 250 700 200 150 150 1,200 14,750
Dec.18 2,800 2,500 1,850 850 1,550 2,850 250 750 200 150 150 1,200 15,100
Dec.25 2,800 2,500 1,900 850 1,450 2,850 250 750 150 150 150 1,200 15,000
2016
Jan.8 2,450 2,350 1,950 850 1,450 2,850 250 750 150 150 150 1,200 14,550
Jan.15 2,400 2,100 1,950 900 1,450 2,800 250 750 150 150 150 1,200 14,250
Jan.22 2,300 1,800 1,900 900 1,450 2,800 250 750 150 150 150 1,200 13,800
Jan.29 2,250 1,750 1,850 900 1,450 2,700 250 750 150 150 150 1,200 13,550
Feb.19 2,400 1,550 1,900 850 1,400 2,700 250 750 150 150 150 1,250 12,500
Feb.26 2,450 1,500 1,850 850 1,400 2,700 250 750 150 150 150 1,250 13,450
Mar.4 2,400 1,500 1,900 800 1,400 2,650 250 750 150 150 150 1,200 13,800
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Mar.11 2,400 1,550 1,900 800 1,450 2,650 250 700 150 100 150 1,100 13,150
Mar.18 2,350 1,650 1,850 800 1,450 2,600 250 700 150 100 150 1,000 12,950
Mar.25 2,350 1,600 1,850 800 1,400 2,600 250 700 150 100 150 1,000 12,950
Apr.1 2,350 2,060 1,750 740 950 2,600 400 700 150 100 150 1,100 13,140
Apr.8 2,400 2,100 1,780 720 990 2,600 400 650 150 100 150 1,150 12,800
Apr.15 2,300 1,650 1,800 700 1,300 2,800 250 600 150 100 150 1,000 12,800
Apr.22 2,200 1,600 1,850 700 1,300 2,900 250 500 150 100 150 1,000 12,700
Apr.29 2,200 1,650 1,800 750 1,250 3,000 250 500 150 100 150 1,100 12,900
May.6 2,100 1,700 1,850 700 1,200 3,100 250 400 150 100 150 1,150 12,850
May.13 2,150 1,900 1,900 700 1,250 3,100 250 400 150 100 150 1,150 13,200
May.20 2,200 1,950 1,850 750 1,100 3,050 250 400 150 150 150 900 12,900
May.27 2,150 2,000 1,850 750 1,100 3,100 250 400 150 100 150 850 12,850