Bloomberg reported that Sumitomo Metal Mining Co will cut refined nickel output by 23% in April to September 2009 period as compared with a year earlier on slumping demand from steelmakers.

Sumitomo Metal forecast refined nickel output will drop to 13,700 tonnes in the first half starting April 1st 2009 from 17,734 tonnes produced in the year earlier period. It will also cut ferronickel output in the period by 20% to 8,900 tonnes. It is reducing production of nickel, used in electronics and stainless steel, as Japan heads for its worst recession since 1945, slashing demand from customers.

Sumitomo Metal plans to produce 33,200 tonnes of refined nickel and 16,800 tonnes of ferronickel in the year to March 31st 2009. The company, which last fiscal year planned to produce 36,000 tons of nickel and 22,400 tonnes of ferronickel, has yet to release output figures for the second half ended March 1st 2009. It forecast copper production of 200,000 tonnes for the first 6 months, up from 165,884 tonnes a year earlier.

(Sourced from www.bloomberg.net)