So far, this year's high-nickel pig iron supply is not as expected. On the one hand, the domestic production is difficult to release because the domestic environmental protection has swept through the major nickel pig iron producing areas.On the other hand, the exchange rate continues to depreciate and the foreign nickel pig iron quoted water for lme and other factors.Indonesia's high-nickel pig iron is priced at a yuan premium over domestic high-nickel pig iron, causing Indonesia to move back into the country unless the integrated high-nickel pig iron is still shipped back to China, with the rest expanding into Japan, South Korea and other Southeast Asian markets.According to smm, the fourth quarter nickel pig iron production capacity will usher in an increase, mainly by the following contributions:
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1. After the peak of environmental protection passed, the production of the worst-hit area was gradually restored.
Environmental protection swept across the country this year, but the most serious injuries were mainly in Inner Mongolia and Jiangsu. In June, the most environmentally friendly and severe of all, only one nickel pig iron factory in Tongliao, Inner Mongolia, produced more than 1,000 tons of metals.But by Sept. 23, Inner Mongolia had resumed production at eight nickel pig iron plants, producing more than 5000 tonnes of metals.Production in Jiangsu has also recovered. According to Smm, after several months of upgrading of environmental protection equipment, a high-nickel pig iron plant in Jiangsu Province resumed production of its two 33000 KVA ORE-HEATING furnaces in September, either from 1,200 metal tons to 2,000 metal tons, while the output of other plants has also been restored.
2. The long-closed nickel pig iron plant is driven back to production by high profitability.
Nickel pig iron factories have made better profits as a result of this year's sharp rise in the center of gravity of nickel prices, which has led to higher prices for high nickel pig iron.Among them, factories with higher profitability, such as Shandong, have a profit margin of 50%, while factories with lower profitability also have a profit margin of 10. 5%.Driven by high profit margins, many long-closed nickel pig iron plants are ready to return to production. According to smm, this year Inner Mongolia, Henan, Liaoning and other regions have many factories.In addition, there are factories in preparation for production, are expected to see the fourth quarter of these factories.
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