Chinese nickel market under pressure due to Indonesian ferronickel growth
9 Jun 2020 15:17 reported by Isora
The pandemic of this year truly caused huge pressure on the global economy. However, since pneumonia has been gradually controlled by the national governments, economic activities are now prudently recovering.
Under the urgent demand from restarting production and construction works, the stainless steel consumption suddenly soared. In the meanwhile, China's port stock of ferronickel continued dropping down due to lack of material supply.
Luckily, from the first half of May, the Philippines restarted the production and transportation in its main nickel mines, which might help feed China's demand for materials.
At the same moment, Indonesia also settled projects to improve the output of ferronickel. With fewer orders received from the end-users, China's stainless steel factories had no choice but to find a way out by exporting products overseas.
As estimated, the nickel price might be under pressure after the recovery of supply, along with the weak demand in the market.
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