[Mining Machinery Industry Network] According to foreign media news, Macquarie Group (Macquarie Group Ltd.) commodities research team, said Jim Lennon, Chinese nickel pig iron production costs increased by 67% this year, due to soaring prices of ore.
He said that the current Chinese nickel pig iron using a rotary kiln production costs per ton of $ 20,000 per tonne at the beginning of $ 1.2 million. Lennon pointed out, the grade of 1.8% nickel ore prices last week to $ 130-140 per ton of wet, when beginning at $ 40-50.
Indonesia is the world's largest producer of nickel mines in the country from the beginning of January this year banned the export of iron ore, is designed to encourage domestic refining activities. London Metal Exchange (LME) three-month aluminum prices rose YTD total of 56%, due to speculation that demand will outstrip supply. Macquarie expected, Chinese nickel pig iron production will decline this year by 25%.
Lennon said: "The production of nickel pig iron ore spot prices have soared since the beginning of use."
He said in an email, traders hold more than half of China's nickel ore inventory, so small nickel pig iron producers have cut output, because the supply is exhausted.
Lennon pointed out, the use of traditional electric nickel pig iron production costs increased by about 50 percent this year. China is the world's largest nickel consumer.
The largest importer of nickel ore
International Nickel Study Group (INSG) said nickel mine in Indonesia last year, production was 477,000 tons. China is the world's largest producer of refined nickel, but also the largest importer of Indonesian nickel ore. Macquarie expects Chinese nickel pig iron production in 2014 will be 373,000 tons.
Lennon said, using a standard electric nickel pig iron production costs from $ 15,000 to $ 23,000 US dollars. Increased costs pushed nickel prices, but price gains may be subject to restrictions on coal and coke prices fell. Citigroup Inc. (Citigroup Inc.) is expected next year refining 132,200 tons of nickel demand will be higher than the supply, and in 2014 is expected to supply 13,800 tons of excess.
According to government data, Indonesia this year, as many as nine nickel processing plant was built. LME three-month nickel prices on May 13 had hit the highest since February 2012 level.
Lennon Turning Indonesia ore export ban, said:.. "I think that the policy will not relax," "When the nickel price of $ 19,000-20,000 even higher, will stimulate the construction of Indonesia's domestic smelters For the Indonesian government Obviously this policy in force. "
Lennon said that Chinese ports and nickel ore processing plant inventory has dropped from 35 million tons by the end of 2013 about 28 million tons, which is equivalent to about 25 tons of nickel, enough to meet the consumption of six months.
