Pressure on nickel pig iron producers From Reuters:
NICKEL CUTS SEEN
Nickel, another metal in surplus, has better near-term prospects of cutbacks in China, where low-grade nickel pig iron (NPI) producers are struggling at current prices.
The cash LME nickel price has tumbled 24 percent to $16,687 per tonne since early February, below the marginal cost of about $17,000.
"It looks like there could be 70-80,000 tonnes of (nickel pig iron) capacity that is vulnerable," said Bielski.
Cutbacks would help balance a market that is expected to be in surplus by 50,000 tonnes this year, according to the International Nickel Study Group.
"I don't think there's much further downside below $17,000 because of the cost pressures and price pressures on the NPI industry," Briggs said.
https://www.reuters.com/article/2012/05/25/us-metals-cutbacks-idUSBRE84O0EB20120525