Platts cited official from Beijing Antaike, the state run non ferrous metals information provider, as saying that China's nickel output is expected to reach 250,000 tonnes in 2008 up by 17% from 214,000 tonnes in 2007.

The Antaike source said "The growth is mainly attributed to key nickel producers raising output to cater to stronger demand from the stainless steel industry. He added that while the government had scrapped the 1% import duty on imported nickel since January 1st 2008 lowering import costs, whether stainless steel producers would import more nickel would depend on market fundamentals.

According to customs data China imported 105,300 tonnes refined nickel in 2007 up by 8.2% from 2006. Most of it came from Canada, Russia and Australia.

Meanwhile, the Antaike source said that China's nickel exports were likely to fall below the 16,930 tonnes exported in 2007 because of higher costs from the 15% tax imposed since January 2007.