Make Kitco Your Homepage

Global nickel market deficit widens in July-INSG

Kitco News

MELBOURNE, Sept 20 (Reuters) - The global nickel market tipped into a wider deficit in July as demand from top stainless steel producer China surged, data from the International Nickel Study Group showed on Wednesday.

Global demand for refined nickel during the month stood at 182,500 tonnes, outstripping production of 177,800 tonnes, the data showed, led by a nearly 10 percent jump in refined demand from China.

The deficit of 4,700 tonnes was well above June's 400 tonne shortfall. For the first seven months of the year, the global deficit for refined nickel widened to 39,700 tonnes from 36,800 tonnes in the first half, but was still smaller than the 43,100-tonne gap seen for the same period of 2016.

In July, global consumption of nickel expanded at a healthy 7.3 percent clip from June while refined supply grew at a slower rate of 4.3 pct. Mine supply surged by 7.7 percent, suggesting a boost to refined supply in the months ahead.

Mine supply was bolstered by the Philippines, the world's top miner, where output grew to 43,800 tonnes from 33,700 tonnes, accounting for the lion's share of growth in Asia.

China's demand in July surged by 9.4 percent to 99,200 tonnes, the INSG showed.

'000 tonnes July June Jan-July 2017 Jan-July 2016 Mine production 196.3 182.2 1197.9 1148.3 Refined production 177.8 170.5 1171.1 1122.3 Refined usage 182.5 170.1 1210.8 1165.4 Balance -4.7 -0.4 -39.7 -43.1 (Reporting by Melanie Burton; Editing by Richard Pullin)

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.