China's December 2023 NPI output was 28,500 mt in nickel content and 692,800 mt in physical content, down 9.42% MoM and 9.65% YoY, aligning with forecasts. SMM research shows rising nickel ore prices in August left Chinese NPI plants with costly reserves. With NPI prices dropping fast, losses widened, ranging from 6.41% to 18.07%, causing some smelters to cut production or shut for maintenance.
China's January 2024 NPI output is forecasted at 27,300 mt nickel content, down 4.22% MoM. Costly nickel ore stockpiles keep production costs high. With the Spring Festival, plants plan cuts, and weak post-holiday stainless steel demand is foreseen, suggesting a continued dip in NPI production.
