FNI Commits Nickel Shipment for 2021
Global Ferronickel Holdings, Inc. (FNI) has promised Baosteel Resources International Co. Ltd to ship as much as 1.3 million wet metric tons (WMT) of nickel ore next year.
A wholly subsidiary of top Chinese steel manufacturing corporation China Baowu Steel Group, Baosteel is engaged in the business of mineral resource investment, logistics services, and trading. The company highly focuses on the trading of metallurgic raw material - with an annual volume of over 60 million tons which cover ore, iron, alloys, coal, non-ferrous metals, ferrous scraps, metallurgical flux, among others.
For next year, half of the shipment of FNI to Baosteel will consist of low-grade nickel ore with 49 per cent iron content and 0.90 per cent nickel content. The rest consists of medium to high-grade nickel ore with 15 per cent to 25 per cent iron content, and 1.30 per cent to 1.80 per cent nickel content.
As a side note, China, the Philippines’ top market for nickel, was where the coronavirus began.
FNI said that as per agreement with Baosteel, 1 million WMT in 2020 has expanded to 1.3 million WMT for the 2021 mining season. According to FNI President Dante R. Bravo, this is on the back of the “quick economic recovery in China”.
“Against other countries, China was able to respond well to this pandemic and manage its economy in an unprecedented manner. The economic growth in China will further accelerate in the coming year as there are recent announcements that [COVID-19] vaccine would soon be available. Given those prospects, we are very bullish in the nickel space,” Bravo said.
Furthermore, nickel mining firms may book higher earnings based on improved world prices.
“In 2019, we exported 40 million to 45 million WMT. The [initial] expectation is it will be lower for this year, but considering that the nickel mining prices, which is through the roof, I hope nickel mines will take advantage of the prices. The same volume is possible this year,” Alcantara, who also serves as the president of nickel mining firm Marcventures Holdings, Inc., added.
He added that the industry could have a more positive outlook next year, based on the positive economy of China.