November 2023's national NPI production in China was 31,600 mt in nickel content and 765,700 mt in physical content, with volume in physical content down 2.87% MoM and volume in nickel content down 6.35% YoY, matching the anticipated reduction in domestic NPI output.
SMM research shows August's nickel ore price hike impacted domestic NPI plants, some holding costly ore reserves, thus increasing losses as NPI prices fell. Smelters now operate at 8-20% losses, leading some to cut production or shut down for maintenance.
December 2023's projected national NPI output is about 30,400 mt in nickel content, down 3.72% MoM. SMM notes NPI plants still have costly nickel ore stocks, keeping production costs high. With a gloomy stainless steel market and low demand, NPI prices are unsupported, and smelters' losses may continue. Thus, a December recovery in NPI production is unlikely.
