Xinhua reported that China's apparent refined nickel consumption in January to November reached 183.50 tonnes up by 15.5%YoY. It included refined output of 105.70 tonnes up by 14.9%YoY and net refined import of 77.80 tonnes up by 16.3%YoY.

Refined nickel production in November was 7.670 tonnes, the lowest monthly level in the year. We found production decrease mainly occurred in Jinchuan which produced 6.840 tonnes in November while production elsewhere increased rapidly.

Refined nickel import recovered to 9,598 tonnes in November after dropped to 6,872 tonnes in September. It seems nickel import has tended to ease as domestic nickel pig iron production meets some of nickel demand. And nickel import seems to move at opposite direction with nickel price.

Nickel prices suffered decline after reaching height in the first half of 2007. Spot price of refined nickel has lingered between CNY 235,000 per tonne to CNY 240,000 per tonne. It seems nickel supply is quite abundant given nickel pig iron production. So it seems nickel ore import in December may be at the same level as in October and November.