Nickel Pig Iron Output in China May Jump, Capping LME Price

Metals Jun 09, 2011 No Comments

NickelRefined-nickel futures on the London Metal Exchange have lost 8 percent this year, outpacing declines in copper, tin, and zinc, while lead and aluminum have gained. Nickel traded at $22,775 per ton on the LME at 8:03 a.m. in Singapore, 23 percent lower than the 34-month high of $29,425 set on Feb. 21.

Nickel pig iron output in China, the world’s largest metals user, may surge 50 percent this year, possibly curbing demand for the refined product and hurting prices that have lagged behind all other base metals in London.

Production of the low-cost substitute for refined nickel may be 240,000 metric tons in 2011 compared with 160,000 tons in 2010, according to Xu Aidong, senior nickel analyst at Beijing Antaike Information Development Co. Output in China in April was 25,000 tons compared with the average of 20,000 tons per month in January to March, said Xu.

via Nickel Pig Iron Output in China May Jump, Capping LME Price 1 – Bloomberg.com.

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Rod Sherkin

Rod is a former senior executive, responsible for Purchasing, for both Pillsbury and Ball Packaging back in the 80’s and 90’s. Since then, he has continued to work in the Purchasing field as both a consultant and founder of the website Propurchaser.com.

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