Increased loss of nickel supply and demand imbalance

Nickel industrial production reduced losses continue to spread.

2014 LME nickel prices fell from 20,000 points later, once the sound increase or expand a nickel smelting mineral mining companies are quick return to calm. January 20, 2014 began, a total ban on Indonesian exports of nickel ore, ferronickel support China's high-quality nickel suddenly lost more than two-thirds of origin, China ferronickel production in 2015 plummeted. According MYSTEEL site statistics, average monthly production of 554,000 tons 2013 2014 average monthly production of 479,000 tons, since 2015, the average monthly output 383,000 tons. Not only the number fell by more than 30 percent, high-grade nickel-iron fell from 12-15 to 8-10, forcing the 300-series stainless steel smelting capacity expansion of electrolytic nickel.

Nickel market supply and demand situation continues to be reversed.

Chinese imports of nickel 46,361.4 tons in July, growth of 20.3%, an increase of 161.6%. Although LME nickel inventories have fallen about 6 percent to 451,962 tons, in the lower grades of nickel-iron, nickel plate prices plummeted, the increase in nickel plate cut big situation, China's stainless steel production enterprises to increase the use of refined nickel will be more high enthusiasm, LME inventories continued downward trend will only accelerate without pause. Russia Norlisk has raised global nickel supply shortage to 60,000 tons in 2016. If nickel prices continue to be 50 percent below the industry cost line of tragic run, 2016 nickel supply and demand situation will worsen, the gap between supply and demand will continue to expand.