[Ferro-Alloys.com] The original nickel output in China tend to shrunk in the future two years when the original nickel output in 2015 tend to be 602000 tones, down 13 percent year on year, and it’s anticipated to be 542000 tones in 2016 with a decrease of 10 percent year on year.

Besides the tighter environmental policies, the lower price also plays an important role in driving the nickel output down. Since the nickel price in London Metal Exchange traded at 12000 USD per metric tone in April 2015, many nickel factories start suffering from the deficit, which directly led to reduction of output among some small private enterprises and a big part of them even went bankrupt. In September, the nickel output hit at a yearly low level and it’s expected to be 198000 tones this year.

The real time point when the ferrous nickel output tend to decrease is after June, before that,  some factories struggled to maintain operations in work just in order to defend their market shares. However, the liquidity shortage and continuous deficit forced them to cut capital expenditures and sell secondary assets when the awful condition seems to continue for a longer time. That’s why the environmental actions and Parade Blue can’t no longer elevate the nickel price again in the near term.

• [Editor:Juan]