http://steelguru.com/news/index/2008...
I like that sentiment...."a desire to support nickel prices"
September 04, 2008
Jinchuan may cut its 2008 nickel output target by 4%
According to Macquarie Group Limited, Jinchuan Group Co may lower its 2008 production target by 4% after prices plunged.
Mr Bonnie Liu analyst of Macquarie said that Jinchuan's output is expected to be 5,000 tonnes lower than the planned 120,000 tonnes for 2008 primarily due to the company's desire to support nickel prices.
Prices of nickel have fallen 26% on London Metal Exchange in 2008 as demand lags behind supply. Demand for stainless steel used in construction is slowing as China reins in economic growth to prevent overheating.
Mr Liu said that about 80% of the producers of nickel pig iron have closed down as nickel prices plunged and production costs rose. Remaining producers are focusing on tolling business for major steel mills such as Baoshan Iron & Steel Co.
He further added that still, Chinese primary nickel output grew reasonably on strong output growth from small nickel producers in Jiangxi and Guangxi provinces in particular.