[Ferro-alloys.com]According to the historical data, during 2011 and 2012, the low FeNi price decreased significantly. In half 2 of 2011, the mainstream ex-works price of low FeNi was RMB3600-3700/mt while in the same time of 2012 the price had already dropped to RMB2850-3000/mt. even if the price continued to go down in 2013 and 2014, the drop rate slowed down. Exclude the short-term recover in mid-2014 affected by the rising condition of high FeNi, the low FeNi market condition of China basically kept at RMB2600-2650/mt in recent two years.

In the first two months of 2015, for the tight supply, the low FeNi price recovered to RMB2600-2650/mt from the low level of RMB2350-2400/mt in Nov. of 2014. However, due to the weak condition of stainless steel, the FeNi price was lack of continuous upward momentum, which might stayed steady in short term. In view of the cost, in early Feb., 2015, the low grade nickel ore(Ni0.9-1.1%,Fe49%) was quoted at RMB215/wet mt, down by 30% year on year while the FOB price drop by 42% to USD15/wet mt. the drop was mainly caused by the surplus supply in 2014. now the low grade nickel ores had already wandered at the bottom, which was basically unlikely to go down then.

The following chart was low FeNi price of China from 2013 to Feb. of 2015(RMB/mt)

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• [Editor:Juan]