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The price gap between refined nickel and nickel pig iron (NPI) has narrowed to nearly half the level seen in early June due to the falling price of nickel on the London Metal Exchange, market participants in China told Metal Bulletin.
Last week, the price of refined nickel plate was about 5,000 yuan ($808) per tonne higher than high-grade NPI (Ni content 10-15%), down from the 10,000 yuan difference seen earlier, sources said.
It was the smallest spread so far this year because NPI producers are unable to cut their prices as deeply as their rivals in primary. The spread now stands at 6,000-7,000 yuan per tonne as nickel plate price increased this week.
"For the moment, the four-year low nickel price hasn't changed the fact yet that domestic stainless steel mills still purchase NPI as major nickel raw material," a trader...