BEIJING: China’s imports of refined nickel dropped to the lowest level in four months in August, underscoring flagging demand as the stainless-steel industry slowed.
Inbound shipments contracted 60 percent to 18,774 metric tons from July, when imports were the second-highest on record, according to China’s customs administration data on Monday.
Lower imports of refined metal may exacerbate losses in prices, which have led declines in base metals this year amid near-record inventories in London Metal Exchange-tracked warehouses. Credit Suisse Group AG and Citibank Inc. are among banks that have reduced price forecasts because of the dim outlook for demand in the biggest consumer. Imports of the metal in alternative forms including ferronickel and ore also fell in August, the data showed.
“Nickel is probably the most exposed of any metal to China, with China comprising just over 50 percent of demand,” Credit Suisse said in a report on Monday before the trade data were released. Consumption in the country has been dramatically lower than expected this year, it said.
Nickel traded at $9,920 a ton on the London Metal Exchange at 3 p.m. in Shanghai, down 35 percent this year after hitting a six-year low of $9,100 in August. Nickel inventory in LME- tracked warehouses that expanded to a record in June remains 9.6 percent higher this year.
Shipments of nickel into China had accelerated this year amid lower domestic output of nickel pig iron, a cheaper substitute, and after the Shanghai Futures Exchange expanded its approved brands to include metal from outside the country. China’s stainless-steel output dropped to its lowest in six months in July, according to Beijing Antaike Information Development Co.
China’s imports of refined nickel dropped to the lowest level in four months in August, underscoring flagging demand as the stainless-steel industry slowed.
Inbound shipments contracted 60 percent to 18,774 metric tons compared with July, when imports were the second-highest on record, according to China’s customs administration data on Monday.
Lower imports of refined metal may exacerbate losses in prices, which have led declines in base metals this year amid near-record inventories in London Metal Exchange-tracked warehouses. Credit Suisse Group AG and Citibank Inc. are among banks that have slashed price forecasts because of the dim outlook for final demand in the biggest consumer. Imports of the metal in alternative forms including ferronickel and ore also fell in August, the data showed.
“Nickel is probably the most exposed of any metal to China, with China comprising just over 50 percent of demand,” Credit Suisse said in a report on Monday before the trade data were released. Consumption in the country has been dramatically lower than expected this year, it said.
Nickel traded at $9,920 a ton on the London Metal Exchange at 3 p.m. in Shanghai, down 35 percent this year after hitting a six-year low of $9,100 in August. Nickel inventory in LME- tracked warehouses that expanded to a record in June remains 9.6 percent higher this year.
Shipments of nickel into China had accelerated this year amid lower domestic output of nickel pig iron, a cheaper substitute, and after the Shanghai Futures Exchange expanded its approved brands to include metal from outside the country. Still, China’s stainless-steel output, which relies on nickel, dropped to its lowest in six months in July, according to Beijing Antaike Information Development Co.
China’s imports of refined nickel dropped to the lowest level in four months in August, underscoring flagging demand as the stainless-steel industry slowed.
Inbound shipments contracted 60 percent to 18,774 metric tons compared with July, when imports were the second-highest on record, according to China’s customs administration data on Monday.
Lower imports of refined metal may exacerbate losses in prices, which have led declines in base metals this year amid near-record inventories in London Metal Exchange-tracked warehouses. Credit Suisse Group AG and Citibank Inc. are among banks that have slashed price forecasts because of the dim outlook for final demand in the biggest consumer. Imports of the metal in alternative forms including ferronickel and ore also fell in August, the data showed.
“Nickel is probably the most exposed of any metal to China, with China comprising just over 50 percent of demand,” Credit Suisse said in a report on Monday before the trade data were released. Consumption in the country has been dramatically lower than expected this year, it said.
Nickel traded at $9,920 a ton on the London Metal Exchange at 3 p.m. in Shanghai, down 35 percent this year after hitting a six-year low of $9,100 in August. Nickel inventory in LME- tracked warehouses that expanded to a record in June remains 9.6 percent higher this year.
Shipments of nickel into China had accelerated this year amid lower domestic output of nickel pig iron, a cheaper substitute, and after the Shanghai Futures Exchange expanded its approved brands to include metal from outside the country. Still, China’s stainless-steel output dropped to its lowest in six months in July, according to Beijing Antaike Information Development Co.
