Nickel Market Report March 2013

Introduction 5
1. Financial overview 5
1.1 CPI up by 3.2% in February y-o-y, a new record in the past 10 months 5
1.2 Higher PMI in China 6
2. International market review 7
2.1 International oil futures rebounding surprisingly in March 7
2.2 European debt crisis and QE of Japanese Yen pushing up US dollar in March 8
2.3 Worsening Cyprus’ crisis hitting nonferrous metals market 9
3. Global spot market review 10
3.1 Lateritic nickel ore market 10
3.2 Nickel cathodes market 12
3.3 Ferronickel market 15
3.4 Nickel sulfate market 18
4 Output in March 19
4.1 Nickel cathodes output 19
4.2 Ferronickel output in March in China 20
5 Customs data 20
5.1 Chinese nickel ore import down by 21.95% in February MOM 20
5.2 Chinese refined nickel import down by 39.90% in February month on month 21
5.3 Top10 unrolled non-alloy nickel enterprises in China in February 22
5.4 Chinese ferronickel import down by 52.39% in February MOM 25
5.5 Chinese nickel sulfate import data none in February 28
6. Nickel industry developments 28
6.1 Lateritic nickel ore industry developments 28
6.1.Asian Metal Copyright2 Nickel cathodes market 12 3.Asian Metal Copyright1 Cuba Nickel Industry plans to produce 62000t nickel and cobalt. 28
6.2 Nickel cathodes industry developments 28
6.2.Asian Metal Copyright8% delivered-at-ports price trend in March: RMBt 11 Picture 6 Nickel cathodes of Jinchuan brand factory price 14 Picture 7 Nickel cathodes of Jinchuan brand price in spot market 14 Picture 8 Nickel of Norilsk brand price in Chinese spot market 15 Picture 9 Nickel of Inco brand price in Chinese spot market 15 Picture 10 Ex works price trend of ferronickel 10%min in China: RMBmtu 17 Picture 11 Ex works price trend of ferronickel 4-6%min in China: RMBmtu 17 Picture 12 Ex works price trend of ferronickel 7-9%min in China: RMBmtu 18 Picture 13 nickel sulfate price movement in March 19 Table Table 1 Inventory quantity and vessel mooring situation 11 Table 2 nickel cathodes output in March in China .Asian Metal Copyright1 PT Vale Indonesia indicated the output of nickel increased by 5.Asian Metal Copyright2 Zhanhua Weiye Nickel Co.Asian Metal Copyright7% to 70,717t in 2012. 28
6.2.Asian Metal Copyright5 Chinese nickel sulfate import data none in February 28 6.Asian Metal Copyright2 Royal Nickel Corporation will cooperate with Qingshan Group about nickel production. 28
6.2.Asian Metal Copyright33 Table 8 China top 10 nickel sulfate import enterprises review in February………35.Asian Metal Copyright3 Guangxi Yinyi Mining and Metallurgy Technology Co.Asian Metal Copyright2% in February y-o-y, a new record in the past 10 months 5 1.Asian Metal Copyright, Ltd. reduced nickel cathodes production in February 28
6.3 Ferronickel industrial developments 28
6.3.Asian Metal Copyright1 Chinese nickel ore import down by 21.Asian Metal Copyright1 Pinglu County Changhong High-Quality Steel Materials Co.Asian Metal Copyright, Ltd.Asian Metal Copyright, Ltd plans to resume ferronickel production on March 1. 28
6.3.Asian Metal Copyright3 Huaxin Industry Co.Asian Metal Copyright2 Zhanhua Weiye Nickel Co.Asian Metal Copyright International market review 7 2.Asian Metal Copyright, Ltd., reduced ferronickel 11-13% production 28
6.3.Asian Metal Copyright 28 6.Asian Metal Copyright3 Huaxin Industry Co.Asian Metal Copyright90% in February month on month 21 5.Asian Metal Copyright, Ltd.Asian Metal Copyright3 Ferronickel industrial developments 28 6.Asian Metal Copyright, restarted operation for middle-grade ferronickel in middle-March. 29
6.3.Asian Metal Copyright.Asian Metal Copyright4 Pinglu County Changhong High-Quality Steel Materials Co., Ltd plans to resume ferronickel production 29
7. Stainless steel industry developments 29
7.1 Stainless steel scrap 29
7.2 300 series stainless steel 30
8. Outlook for April 30
8.1 Lateritic nickel ore market outlook 30
8.2 Nickel cathodes market forecast 30
8.3 Ferronickel market outlook 30
8.4 Nickel salt market outlook 31

Picture
Picture 1 Chart of CPI and PPI in China during 2011-2013 6
Picture 2 Chinese PMI chart during 2011-2013 7
Picture 3 Futures price of US crude oil in dominant contracts in February 8
Picture 4 Chart of USD Index tendency 9
Picture 5 Chinese lateritic nickel ore (nickel content of 1.8%) delivered-at-ports price trend in March: RMB/t 11
Picture 6 Nickel cathodes of Jinchuan brand factory price 14
Picture 7 Nickel cathodes of Jinchuan brand price in spot market 14
Picture 8 Nickel of Norilsk brand price in Chinese spot market 15
Picture 9 Nickel of Inco brand price in Chinese spot market 15
Picture 10 Ex works price trend of ferronickel 10%min in China: RMB/mtu 17
Picture 11 Ex works price trend of ferronickel 4-6%min in China: RMB/mtu 17
Picture 12 Ex works price trend of ferronickel 7-9%min in China: RMB/mtu 18
Picture 13 nickel sulfate price movement in March 19
Table
Table 1 Inventory quantity and vessel mooring situation 11
Table 2 nickel cathodes output in March in China .21
Table 3 Table 3 Top 10 import enterprises of nickel ore sand and nickel concentrate in February in China 22
Table 4: China Import statistics of nickel ore san and concentrate in February….23
Table 5 Top 10 unwrought non-alloy nickel import enterprises in February in China 28
Table 6China top 10 ferronickel import enterprises review in February 32
Table 7: China Import statistics of ferronickel in February……………………….33
Table 8 China top 10 nickel sulfate import enterprises review in February………35
.Asian Metal Copyright23 Table 5 Top 10 unwrought non-alloy nickel import enterprises in February in China 28 Table 6China top 10 ferronickel import enterprises review in February 32 Table 7: China Import statistics of ferronickel in February………………………Asian Metal Copyright