Nickel Market Report March 2012

Introduction 4
1 Financial overview 4
1.1 Growth rate of CPI fell back in February 4
1.2 PMI continued to increase and concerns on economic eased in March 5
1.3 Economic growth rate decreased to 7.5% for the first time in the past 8 years in 2012 6
1.4 Greece finished bond replacement of EUR177.2b 6
2 International market review 7
2.1 Crude oil prices fell back due to easing situation in the Middle East 7
2.2 US economy recovered slowly and USD to rebound 8
2.3 Large difference occurred in gold market and prices decreased with fluctuations 9
3. Global spot market review 10
3.1 Lateritic nickel ore market 10
3.2 Electrolytic nickel market 13
3.3 Ferronickel market 16
3.4 Nickel salt market 18
4 Output in March 19
4.1 Electrolytic nickel output 19
4.2 Nickel pig iron output in March in China 19
5 Customs data 20
5.1 Nickel ore import increased by 21.69% MOM in February in China 20
5.2 Refined nickel and nickel alloy import decreases by 32.9% MOM in February in China 20
5.3 Top 10 unwrought non-alloy nickel import enterprises in February in China 21
5.4 Ferronickel import data in February in China 25
6. Nickel industry developments 27
6.1 Lateritic nickel ore industry developments 27
6.1.1New Caledonia SMSP and Jinchuan Group to build joint venture 27
6.1.2 Indonesian government requires mines of submitting long-term plan to increase additional value 28
6.1.3 IMA: Indonesia nickel import to plummet by 75% 28
6.1.4 Indonesia limits foreign ownership of mines 28
6.2 Electrolytic nickel industry developments 29
6.2.1 Flower of the East Group builds new nickel-smelting project 29
6.2.Asian Metal Copyright2 Electrolytic nickel market 13 3.Asian Metal Copyright2 Russia lowers export tariff of non-alloy nickel to USD1245.5/t 29
6.2.3 China Metallurgical Group Papua New Guinea nickel-cobalt project sees successful commissioning 30
6.2.Asian Metal Copyright4 Indonesia limits foreign ownership of mines 28 6.Asian Metal Copyright4 US nickel import up by 41.Asian Metal Copyright3.Asian Metal Copyright4% MON in Jan while export down by 19.7% MOM 30
6.2.5 INSG: Global nickel oversupplies by 7,100t in January 31
6.3 Nickel industrial developments 31
6.3.2 Xinhai Technology to expand ferronickel production 31
6.3.3 Huaxin Industry resumes ferronickel production in late February 32
7. Stainless steel industry developments 32
7.1 Stainless steel scrap 32
7.2 300 series stainless steel 32
8. Outlook for April 33
8.1 Lateritic nickel ore market outlook 33
8.2 Electrolytic nickel market forecast 33
8.3 Ferronickel market outlook 34
8.4 nickel salt market outlook 34

Picture
Picture 1 CPI and PPI trends of 2011-2012 5
Picture 2 Chinese PMI in 2011-2012 trends 6
Picture 3 US crude oil futures mainstream contract market price trend 8
Picture 4 USDX trend 9
Picture 5 International gold price trend 10
Picture 6 Chinese lateritic nickel ore (nickel content of 1.8%) delivered-at-ports price trend in March: RMB/t 12
Picture 7 Nickel cathodes of Jinchuan brand factory price 14
Picture 8 Nickel cathodes of Jinchuan brand price in spot market 15
Picture 9 Nickel of Norilsk brand price in Chinese spot market 15
Picture 10 Nickel of Inco brand price in Chinese spot market 16
Picture 11 Ex works price trend of ferronickel 10%min in March in China: RMB/mtu 17
Picture 12 Ex works price trend of ferronickel 4-6%min in March in China: RMB/mtu 18
Picture 13 Ex works price trend of ferronickel 7-9%min in March in China: RMB/mtu 18
Table
Table 1 Inventory quantity and vessel mooring situation: 11
Table 2 Electrolytic nickel output in March in China 19
Table 3 Top 10 import enterprises of nickel ore sand and nickel concentrate in February in China 20
Table 4 Top 10 unwrought non-alloy nickel import enterprises in February in China 21
Table 5 Top 10 unwrought non-alloy nickel import countries in February 21
Table 6 Top10 ferronickel import enterprises in February in China 25
Table 7 ferronickel import in detail in February in China 26

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