Stainless Espresso: Nickel mess, are the consultants taking over?
Stainless Espresso: Nickel mess, are the consultants taking over?

31 March 2022 – Have the consultants at Tsingshan taken over to clean up the self-inflicted nickel mess? Nickel pig iron (NPI) production in Liaoning and Inner Mongolia with severe problems. And base metals are moving sideways so far today.

Nickel mess, are the consultants taking over?

After the Tsingshan Group ran into payment difficulties due to the self-inflicted nickel price jump to over $100,000 per tonne in early March 2022, a banking group (sources include JPMorgan, BNP Paribas SA, CCB International Holdings and ICBC Standard Bank Plc) had to step in to save the Chinese group.

The banking group has now apparently hired the management consultants of one of the leading law firms for financial transactions to clean up the Tsingshan nickel mess.

NPI: Production and transport problems

Major nickel pig iron producers in China’s Liaoning and Inner Mongolia provinces have been hit by serious production and transportation problems due to Covid19 diseases and quarantine measures, according to reports. In Liaoning, some NPI factories have completely stopped production. This is currently having an impact on NPI availability. In addition, the availability of imported high-grade nickel and nickel briquettes seems to remain very tight.

Base metals move sideways

Already on the SHFE, base metals have moved sideways at the end of the week without any significant swings in either direction. The LME also started trading relatively quietly.

Stainless steel mill in Taiwan raises prices for April

At least one major Taiwanese stainless steel mill has also reportedly already raised prices significantly for April 2022 due to increased raw material costs.

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