Chinese stainless-steel producer Tsinghsan has signed an agreement to supply 100,000 tonnes of nickel matte converted from nickel pig iron (NPI) —equivalent to 75,000 tonnes of nickel contained— to midstream majors CNGR and Huayou Cobalt for nickel sulphate production, beginning in October 2021.
The announcement sent shockwaves around the market, with LME nickel prices closing 13% down on Friday 8 March compared with the previous week.
Tsingshan confirmed that it had started trialling production of nickel matte from NPI in July 2020 at the Morowali Industrial Park (IMIP) in Indonesia, a process which was reportedly successfully completed . . .