Friday, June 19, 2009

Ferronickel Prices Start To Pick Up

Prices in China of low grade ferronickel with Ni content of below 2% has picked up recently. Recent quotations have been in the region of CNY 3300 to 3500 per tonne in Shandong though some local plants are still fulfilling earlier orders at a price of CNY 3200 per tonne.

One Shandong FeNi maker producing 400 to 500 tonnes a year told Mysteel that "Prices of new orders or spot goods have touched CNY 3400 to 3500 per tonne but we cannot raise the price now, because current orders for June supply were agreed on prices at earlier days."

Apart from one or two nickel plants under maintenance in Linyi, most of plants have resumed production. Demand has boomed in June but the future trend will depend on the stainless steel market.

As plants are busy carrying out old orders, spot supply is limited at present. Orders for next month will be placed from June 20th. On the other hand, most imported nickel in Q1 hasn't been utilised, so imports in Q2 have had to be stockpiled. Stainless steel stocks also remain high raising worries about market in July and August, the traditional off-season for stainless steel consumption.

Source: Steel Guru

No comments: