Attention: thaihot nickel producers next year to jointly cut 10 million tons of nickel oxide [price]
According to SMM November 27th: domestic nickel industry chain fell into the deep loss in the industry, according to SMM data, in November 27th when the week is measured, the average loss of domestic EF process nickel pig iron loss of about 9%, 20% tons of nickel iron smelting enterprises, electrolytic nickel spot market prices in the vicinity of 7 yuan / ton, electrolytic nickel smelting plant losses are more important.
Reportedly, led by Jinchuan, combined domestic and Jean, Xinxin, Castle Peak, Delong, Xinhai, new Hualian, Baotong eight on the 27th in Shanghai held a meeting insured to limit production, jointly cope with the current downturn in the market price of nickel, Baotuan quite price means strong, the meeting initially identified next year to cut the amount of 10 million tons of metal.
SMM 2016 market and the current situation of judgment based on, native nickel in 2016 annual output of around with a total of 500 million tons, if next year based on production of 10 million tons of nickel metal amount, reducing production accounted for primary nickel output of about 20%; if effectively implemented, will help the nickel market rapid destocking, resulting in 2016 nickel domestic shortages. But that the joint production of the participating companies may only be a good look and vision for the market, the actual difficulty occurs in the above business. The reasons are: first, the majority of enterprises in the low cost, the majority of enterprises can still be profitable; two. If the initial rise in nickel prices, the cut action can continue? Is there a business to withdraw from the action? Is there a penalty for abandoning the middle? Leave it to the industry on their own. Need to remind is, last week zinc industry backbone enterprises through the SMM platform released cut proposal, unfortunately, a few days can hear backbone enterprises by secretly to jettison the price of the machine. Three. The current nickel market downturn, some of the factory cash costs have continued to lose more than a month, even without a joint production meeting, high cost capacity has been reduced. Cut or not the key is still the level of profitability, rather than the legal effect of a paper agreement.