Blog

SMM Reuters: Hong Kong, August 29, sources said, the world’s largest metals consumer – Chinese nickel smelter request the central government to cut or cancel the 15% export tariff, because of the wish to increase overseas exports.

China’s domestic nickel demand this year is significantly reduced due to the slowdown in economic growth led to the backdrop of declining demand, the stainless steel plant control production. Traders claimed that, at least at the end of 2012, demand is still weak.

China’s nickel exports increase will suppress the LME price, so far nickel prices have dropped 25% from a year high hit in February.

The one of the two sources said the nickel smelter also hope to extend the policy nickel raw materials imported from abroad, and the hope that the duty-free export to import raw materials, manufacturing finished. For the sensitive type of event, they declined to name.

Petitions will succeed is unclear, but in 2009, China canceled export tariffs on cobalt, before manufacturers also make request.

Official data show that refined nickel and alloy exports in the first seven months of this year, a year-on-year decrease of 17% to 19,253 tons of space means that export growth.

Analysts said that the stainless steel enterprises weak demand prompted the first half of this year, a decrease of 1% nickel consumption in real terms over a year earlier, to 329,000 tons.

She added that further weakness in consumption in the second half of this year or 5%, or 313,000 tons.

The term nickel imports Chinese traders have been postponed, and have purchased nickel poor sales. With the maintenance of the large stainless steel enterprise in August, will further reduce consumption.

Stainless steel production last year accounted for about 80% of the domestic nickel consumption.

However, senior executives said a large-scale enterprise, due to weak demand, most of the large stainless steel enterprises currently only operational capacity of 70-80%, the first quarter, close to the operators full capacity.

The third quarter, demand for stainless steel will fall further over the second quarter, the end-user buying interest is very bad, traders reluctant to procurement, demand for the fourth quarter due to they are not sure whether it will be picked up. “

The analysts said that the five largest stainless steel producer in China, including Shanxi Taigang enterprises during April-June this year, a total production of about 200 tons of stainless steel, a decrease of 4% compared with the previous quarter, and down 2.8% over the same period last year.