April 29 (Bloomberg) -- Production of nickel pig iron in China, the world’s largest consumer of nickel, jumped to a record in the first quarter after prices more than doubled in the past year, according to a researcher.
Output of nickel contained in pig iron, a low-cost substitute for the refined metal, more than tripled to 44,000 metric tons in the first three months, said Wang Chongfeng, an analyst at Shanghai Metals Market, a unit of researcher CBI China. March output reached a record 17,400 tons, she said.
“Nickel pig iron producers ramped up output as it has become quite profitable following such a large increase in prices,” Wang said today by phone from Shanghai. “Restocking by stainless steel producers has also driven demand.”
Nickel for three-month delivery on the London Metal Exchange is the best-performing commodity this year, climbing 39 percent as stainless steel producers, the biggest users of the metal, increased output as the global economy recovers. It advanced to a 23-month high of $27,595 a ton on April 16 and last traded at $25,770 at 4:04 p.m. in Singapore.
China’s production of nickel pig iron is expected to exceed 50,000 tons in the second quarter, said Wang, driven by demand from domestic stainless steel mills. Nickel is used to make the alloy more resistant to corrosion. more...
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