Xinjiang Xinxin Mining Industry, China’s second-largest producer of nickel used in stainless steel production, told the South China Morning Post it expects its fourth quarter results will show a profit and a 300% jump in revenue mostly from increased nickel volume.
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The improvement was due to higher nickel prices, sales volume and lower production costs in 2014, while revenue was also boosted by the commissioning of a copper project in the middle of last year, the Xinjiang-based firm said in a filing to Hong Kong’s stock exchange.
In 2013, it had revenue of 844.9 million yuan and a net loss of 58.5 million yuan. Revenue was 1.53 billion yuan in 2012.
The firm said it had a “significant increase” in the sales volume of its mainstay product, nickel cathode, from 4,182 tonnes in 2013. The product accounted for 51.2 per cent of total revenue in that year, compared to 46.5 per cent contributed by copper cathode.
The Indian nickel cash price experienced the biggest price decline of the day, dropping 2.1% to close at INR 862.70 ($13.96) per kilogram on Wednesday, March 4. On the LME, the nickel spot price fell 2.1% to $13,580 per metric ton. The 3-month price of nickel weakened by 2.0% on the LME, settling at $13,675 per metric ton.
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Chinese stainless steel prices were mixed for the day. The price of Chinese ferro-chrome saw essentially no change for the fifth day in a row, remaining around CNY 10,950 ($1,745) per metric ton. The price of Chinese ferro-moly continues hovering around CNY 82,000 ($13,069) per metric ton for the fifth day in a row.
The price of Chinese primary nickel saw a 1.7% decline to CNY 102,500 ($16,336) per metric ton. For the fifth day in a row, the Allegheny Ludlum 316 stainless surcharge remained essentially flat at $0.87 per pound. The price of Chinese 316 stainless coil was unchanged at CNY 23,700 ($3,777) per metric ton. The price of Chinese 304 stainless coil held steady at CNY 16,700 ($2,662) per metric ton. For the fifth consecutive day, the price of Chinese 316 stainless steel scrap held flat at CNY 13,050 ($2,080) per metric ton.