In view of the rebounded nickel price, it is marked to see how the production of nickel contained pig iron in China moves. The quantity of nickel ore stocked at wharves in Chinese ports as of the end of 2008 was estimated to be 8 million tonnes but the above stocks of nickel ore are currently in the direction to decrease.

LME nickel prices have risen to a level of USD 14,000 per tonne and, therefore, it has been rumored that Chinese plants, which have suspended to produce nickel-contained pig iron as this production is not payable for nickel price at present, are now considering resuming their production of nickel contained pig iron.

As a measure to supply raw material for production of stainless steel, Tsingshan Stainless steel Company is scheduled to complete in October of 2009 a new plant with capacity to produce 15,000 tons per annum of nickel in ferronickel, containing 10% min. of Ni.

According to a view by leading analysts or the parties concerned in nickel industry, when LME nickel prices would have recovered to a level of USD 6 to USD 7 per pound, Chinese plants are supposed to be able to produce 150,000 to 200,000 tonnes per annum of nickel in nickel contained pig iron in the course of the next 6 to 9 months.

In expectation of resumption in the demand for nickel ore from Australia and China, Toledo Nickel Company has actually reopened nickel mine in Palawan Island of Philippines under suspension and started again to ship nickel ore.

(Sourced from TEX Report Limited)