Nickel pig iron capacity expansion defies slowdown in market
Sep 05, 2012 | 03:00 PM
SHANGHAI, China Chinas nickel pig iron prices have been dragged down by falling London Metal Exchange nickel tags and weak demand for stainless steel, and the market might face a supply glut as producers bring more capacity online.
Spot nickel pig iron prices have fallen 11.5 percent since the start of the year to 1,130 to 1,150 yuan ($178 to $181) per nickel unit this week from 1,280 to 1,300 yuan in early January, in line with LME three-month nickel prices, which hit $15,885 per tonne on Sept. 5, down 13.8 percent from $18,425 on Jan. 3.
The three main costs for producers of nickel pig ironused as an alternative to nickel in the production of stainless steelare energy, transportation and nickel ore. Falling stainless steel demand and a weak nickel pig iron market have seen many producers struggle to make a profit, with many suspending operations.....
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