China announced of its plans of a reduction of zinc and nickel production

​The producers of refined nickel and nickel pig iron (NPI) of China have announced of their plans on the reduction of production. 8 large companies (total capacity of about 400,000 tons of nickel a year), including Jinchuan Group Co Ltd., said they would reduce metal production in December by 15,000 tons, in 2016 – by at least 20% of the result of 2015. If domestic prices stay at the level of at least 70,000 yuans/ton, nickel producers will consider the issue of a more significant reduction of volumes.

The plans of nickel producers were announced after their meeting in Shanghai on Friday where the representative of metallurgical companies gathered to coordinate their actions on the background of the global surplus in the market, demand and price fall which fell to the minimum.

The leading zinc producers of China also announced of their intention to reduce the production. They plan to produce 500,000 tons.