Out look for Nickel is bullish on most fronts, if oil does stay high, the Tar Sands development in Alberta&Sask. will suck up a huge pile of Nickel in the SS piping alone.

drill it and they will come

griz

Chinese nickel: demand returns, but so does pig nickel production

In its latest China Commodities Weekly Review, Macquarie Research notes that Chinese nickel demand has been improving, but pig nickel production is also increasing again due to the revival in nickel prices.

Author: Adam Rowley
Posted:  Tuesday , 13 Nov 2007

Macquarie Research - 

Last week, Macquarie joined the China International Nickel and Cobalt Industry Forum held at Antaike in Ningbo, Zhejiang province. The conference was well-attended by more than 600 delegates from the nickel, cobalt and stainless steel industries.

Overall, most of the feedback from the conference was upbeat about the prospects for growth in Chinese stainless steel demand in 2008. However, caution remains about the nickel outlook due to the recent recovery in Chinese nickel pig iron production and the rise in global nickel prices since mid-October of this year.

Utilisation rates at Chinese stainless steel mills have returned to normal since mid-October, following cuts in August and September, and it is expected that output growth in 2008 will remain strong. It is becoming an increasingly popular view that China will become a net exporter of stainless steel in 2008.

SHFE copper prices fell sharply last week after the steep decline on the LME and weakness in the global equities markets. The front month copper contract closed at Rmb62,200/t (US$8,293/t) on Friday, down by 2.4% from the previous week.

On 8 November, the National Development and Reform Commission (NDRC) and the Ministry of Commerce jointly issued the 2007 version of the ‘Guide of Industries for Foreign Investment'. The new guide will replace the 2004 version and take effect on 1 December, and it appears to indicate an increased focus by the government on tightening control of the domestic mining sector.

During the past week, steel rebar prices hit another record high at US$461/t ex-VAT, above the 2004 high. Hot rolled coil prices also increased, up by 4.5% MoM to US$507/t ex-VAT. The cold rolled coil price, however, was 1.2% below the price last month, at US$585/t, while galvanised steel was quoted at US$592/t, a slight 0.2% increase from last month.

The Indian 63.5% iron ore fine was quoted at US$195/t cif and US$135/t fob, while 66% Hebei iron ore fine posted at US$154/t ex-VAT. Contrary to some press reports, the spot market appears to have been very stable for the past three weeks.