You are in: Home | newpneumonia

Status quo of Chinese nickel producers under the outbreak

2020-02-13 01:07:49

Beijing, February 13(Antaike)-By February 12, the number of confirmed cases of novel coronavirus rose to 44763. During Spring Festival, 22 provinces and cities in China have scaled up the first-level response to public health emergencies. The enterprises located in Guangxi, Guangdong, Jiangsu, Henan, Hunan, Inner Mongolia, Shandong, Fujian, and Anhui etc. were asked to resume work no earlier than 24 a.m. on February 9, while Hubei Province announced the resumption of work no earlier than 24 a.m. on February 13.

 

According to the survey from Antaike, nickel producers strictly did epidemic prevention and control in accordance with local governments, of which nickel cathode supply has been less impacted relatively: nickel producer in Gansu region still remains normal production but stopped sales; nickel smelters in Xinjiang region suspended mining and dressing and waited for labors to return to work; the production in Shandong region continued but the output reduced by 38.5% m-o-m to around 400t in January owing to Spring Festival holiday; as local government strengthened efforts to epidemic prevention and control, the enterprises in Tianjin region would also adopt measures to relatively reduce production. Nickel cathode production in Jilin and Guangxi still did not resume.

 

The influence on NPI produciton is limited and NPI producers mostly maintained production as planned, but we need to alert to the shortage of auxiliary materials due to interprovincial logistics constraints and the risk of nickel ore supply at some enterprises. So far NPI plants in Inner Mongolia have paused production owing nickel ore logistics constraints while NPI plants in Jiangsu and Fujian are still producing normally. Downstream stainless steel mills operated at low capacity as scheduled, because raw material stocks have been prepared before Spring Festival, it is expected that follow-up material resupply and stainless steel finished products shipments may be affected; middle and small-sized steel mills have been particularly affected by the outbreak, for instance, the resumption of stainless steel mills in Foshan region, Guangdong Province, will be postponed to February 17-18, in addition, the governments of Longjiang Town and Lecong Town, two major stainless steel towns in Foshan City, required enterprises to resume work no earlier than March 1, according to market news.

 

Regarding to nickel sulfate, most of nickel sulfate producers shut down or delay the resumption data, because of production scheduling at low level during Spring Festival holidy and restriction policy aiming at the outbreak. The resumption of work in central, south, and east of China is commonly on February 10 while the time in Hubei Province waits for further notice. Downstream ternary precursor enterprises are mostly distributed in the above mentioned regions and they expected to resume production around February 10. Furthermore, downstream terminal mobile enterprises also delayed work, Tesla temporarily closed Shanghai super factory as required by Chinese government and Model 3 production line is expected to resume work after February 10.

 

Generally, the outbreak produces great influence on nickel downstream industries and nickel sulfate production, while the impact on nickel cathode and NPI supply is relatively limited. Antaike predicts China’s nickel cathode output will reach 10,650t in January, 2020, down by 33.4% m-o-m; NPI output (Ni content) will fall by 4.8% m-o-m to 44kt. If the outbreak does not ease within the expected time, the impact of the shortage of auxiliary materials and raw materials in nickel smelters will become apparent.

 

(If you have any queries about the news, please contact Summer Xia via Email: xiatian@antaike.com, or phone: +86-10-63978092, ext. 8061)

(If you have any queries about customer service, please contact Yuan Li via Email: cmm@antaike.com, or phone: +86-10-62560921)