Nickel and stainless steel market
Indonesia was among the countries least affected by the quarantine measures contributing to China’s booming ferronickel imports, an increase of 93% to 1.04 million tons in the first four months of this year. A significant part of this is increasing the supply of nickel pig iron from Indonesia’s expanding processing sector. The International Nickel Study Group (INSG) estimates that global production of extracted nickel has decreased by almost 5% in the first quarter of this year due to a combination of blocks and low prices. The use of nickel, however, plummeted by more than 11%, leaving a 46,000-tonne refined nickel protrusion between January and March.
Companies that use stainless steel are in the industry aerospace and oil he was born in gas, they should start again quite strongly. The three sectors among them represent about 23% of the total nickel end use and a prolonged weakness will fuel a drop in demand of 15% this year with the interruption that will come in the next year.
Chinese stainless steel production grew 10% to 29.4 million tons last year, 56% of world production, according to the International Stainless Steel Forum. As Chinese production rises from the blockade lows in the first quarter, the margins of stainless steel producers are under pressure and are forcing operators to restrain growth to adjust production to demand. The largest low-cost producers could continue to churn out the league with the aim of forcing more expensive operators to exit the market.
The nickel surplus will largely take the form of a stainless steel surplus.
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