Chinese ferronickel prices to decline
2023-03-21 11:54:38 [Print]
BEIJING (Asian Metal) 21 Mar 23 - Currently stainless steel plants have few orders and soft demand for high-grade ferronickel 10%min, so the high-grade ferronickel 10%min market is oversupplied. On Monday, mainstream prices of Chinese high-grade ferronickel 10%min stood at RMB1,190-1,210/mtu (USD173-176/mtu), on par with last Friday. Insiders note that currently stainless steel plants have sufficient inventory of high-grade ferronickel 10%min and market deals become scarce, and predict that the prices of Chinese high-grade ferronickel 10%min would go down in the coming week.
A producer in Northeast China claimed that on Monday they intended to sell high-grade ferronickel 10%min at the price of RMB1,250/mtu (USD182/mtu). However, the current planned purchase price for consumers stands at RMB1,150/mtu (USD167/mtu), and they are temporarily unable to accept the price. "On Monday we quoted RMB1,250/mtu (USD182/mtu) for high-grade ferronickel 10%min, stable compared to last Friday. We made no deal today and last sold 2,000t at RMB1,340/mtu (USD195/mtu) in early March", the source noted, adding that their downstream customers wait currently on the sidelines towards the market and the ferronickel inventory may increase from about 3,500t to 6,000t or so by the end of the month, and predicts that the prices of Chinese high-grade ferronickel 10%min would fall in the following week.
The producer, with an annual production capacity of 150,000t, saw an output of 72,500t or so in 2022. They produced about 5,000t in February and expect to output about 6,000t in March, holding about 3,500t of stocks at the moment.
A consumer in East China reported that at present their high-grade ferronickel inventory can be used for more than 20 days, and after ten days they will not have a purchase plan and consume the inventory first. "On Monday we received a quotation of RMB1,190/mtu (USD173/mtu) for high-grade ferronickel 10%min, in line with last Friday. If we purchase, we intend to conclude the deal at RMB1,150/mtu (USD167/mtu). We closed no deal this week and last purchase 10,000t at RMB1,380/mtu (USD201/mtu) a month and a half ago", the source mentioned, adding that the current high-grade ferronickel 10%min market sees sufficient supply and stainless steel plants wait on the sidelines towards the market, and expects that the prices of Chinese high-grade ferronickel 10%min would decline in the upcoming week.
With a monthly consumption of about 200,000t of high-grade ferronickel, the company used 200,000t in February, and expects to consume 200,000t in March, holding about 140,000t of high-grade ferronickel 10%min stocks for the time being.
A producer in Northeast China claimed that on Monday they intended to sell high-grade ferronickel 10%min at the price of RMB1,250/mtu (USD182/mtu). However, the current planned purchase price for consumers stands at RMB1,150/mtu (USD167/mtu), and they are temporarily unable to accept the price. "On Monday we quoted RMB1,250/mtu (USD182/mtu) for high-grade ferronickel 10%min, stable compared to last Friday. We made no deal today and last sold 2,000t at RMB1,340/mtu (USD195/mtu) in early March", the source noted, adding that their downstream customers wait currently on the sidelines towards the market and the ferronickel inventory may increase from about 3,500t to 6,000t or so by the end of the month, and predicts that the prices of Chinese high-grade ferronickel 10%min would fall in the following week.
The producer, with an annual production capacity of 150,000t, saw an output of 72,500t or so in 2022. They produced about 5,000t in February and expect to output about 6,000t in March, holding about 3,500t of stocks at the moment.
A consumer in East China reported that at present their high-grade ferronickel inventory can be used for more than 20 days, and after ten days they will not have a purchase plan and consume the inventory first. "On Monday we received a quotation of RMB1,190/mtu (USD173/mtu) for high-grade ferronickel 10%min, in line with last Friday. If we purchase, we intend to conclude the deal at RMB1,150/mtu (USD167/mtu). We closed no deal this week and last purchase 10,000t at RMB1,380/mtu (USD201/mtu) a month and a half ago", the source mentioned, adding that the current high-grade ferronickel 10%min market sees sufficient supply and stainless steel plants wait on the sidelines towards the market, and expects that the prices of Chinese high-grade ferronickel 10%min would decline in the upcoming week.
With a monthly consumption of about 200,000t of high-grade ferronickel, the company used 200,000t in February, and expects to consume 200,000t in March, holding about 140,000t of high-grade ferronickel 10%min stocks for the time being.
