Surging China stainless steel output may reverse nickel slump

Melbourne

A SURPRISE jump in stainless steel production this year in China, the world's biggest nickel user, may reignite a rally in nickel prices as investors shift focus to demand from worries over Philippine supply.

China's output of nickel-bearing stainless steel, which uses more nickel than overall stainless steel, during January to July surged to 11.201 million tonnes, up 10 per cent from the same period in 2015, according to UBS. Overall stainless steel output for the first seven months of 2016 was 8 per cent higher than a year ago at 13.639 million tonnes, UBS said.