China's December 2023 refined nickel output was 24,500 mt, up 6% MoM and 40.57% YoY, matching SMM forecasts. A northwest smelter's push for year-end growth notably lifted production over November's. December's nickel production growth was spurred by a moderate price rebound and a dip in raw material costs, which allowed smelters who source raw material externally to make profits, prompting previously idle smaller factories to restart production.
China's refined nickel output is expected to hit 23,700 mt in January 2024, down 3% MoM. This is due to potential further price drops amid global stock and production pressures, risking losses if prices near production costs. Also, a smelter has scheduled lower early-year output.
