Jinchuan cuts nickel EXW price by CNY 6000 per tonne - 21 Nov, 2008
It is reported that Asia's largest nickel producer Jinchuan Group Limited has lowered its ex works price by CNY 6000 per tonne to CNY 90000 per tonne, down from its previous nickel price of CNY 96000 per tonne.
Nickel price slumps sharply influenced by multi factors in Q3. Contract prices of London Metal Exchange nickel MNI3 has fallen about 64.54% this year, down to USD 10000 per tonne. Affected by the downturn, Jinchuan slashed its price for several times. Nickel price in Shanghai spot market is quoted at CNY 89500 per tonne, slipping by CNY 3500 per tonne.
About 63.8% of nickel in the world is used in producing stainless steel products, whereas in China, nickel consumption in this aspect is 50%. China's stainless steel consumption drops behind its output in short term, dragging the stainless steel producers all in red. Beside, the non-nickel 400 stainless steel will take more quotas in the whole production sector.
Meanwhile, new capacity for nickel production is estimated to reach about 205,700 tons in 2009. Hence, nickel price will not get out from the valley unless all the overstock is licked up someday.
