On March 15, Yang Zhiqiang, president of China's Gansu Province-based Jinchuan Group Ltd, stated that the company plans to produce 130,000 mt of nickel and 6,000 mt of cobalt in 2010, almost the same as the 2009 output levels. Mr. Yang predicted that the international nickel price would eventually decrease to $18,000/mt in the current year as no sound increase has been seen on the demand side.
The price of nickel has been climbing up since February this year; however, the increase has been considered by insiders to be the result of speculation in the market.
While China is the world's largest producer of cobalt, Jinchuan Group accounts for one third of China's total cobalt output. Meanwhile, the company is also the leading domestic producer of nickel.