It is reported that China's largest nickel producer Jinchuan Group has lowered its two domestic electrolytic nickel prices by CNY 28,000 (USD 3,692) per tonnes each with effect from July 10th 2007. Jinchuan in a statement said that its price for electrolytic nickel (4X4) in drums is now priced at CNY 299,200 per tonnes ex plant and its full plate material is at CNY 298,000 per tonnes ex plant.

This is the second time in July 2007 that Jinchuan has lowered its prices. Jinchuan previously reduced its nickel prices four times in June 2007 shortly after nickel prices fell to around the USD 40,000 per tonnes level on the London Metal Exchange on the introduction of new lending requirements by the bourse in early June. Nickel prices were previously seen at the USD 50,000 per tonnes level on the LME.

Meanwhile, Jinchuan aims to lift its nickel metal production to 110,000 tonnes in 2007 up by 7.8% YoY from 102,000 tonnes produced in 2006. Jinchuan, which accounts for about 90% of China's total nickel output has a capacity of 130,000 tonnes per year currently. It is in the process to raise its capacity of electrolytic nickel to 150,000 tonnes per year by 2010.

The LME official cash price for nickel slipped to USD 34,855 to USD 34,860 per tonnes on July 9 from USD 36,350 to USD 36,355 per tonnes on July 3rd 2007.