I. Current status and development trend of China's nickel-cobalt industry (1) China's nickel- cobalt resource reserves China's nickel resource reserves are 6.7 million tons, and copper sulfide nickel ore accounts for about 91% of the total reserves. The rest is oxidized ore. 80% of nickel sulfide minerals in Gansu Jinchuan copper-nickel deposit, the rest distributed in the province of Xinjiang, Yunnan, Sichuan, Jilin, Heilongjiang, Guangxi, Inner Mongolia, Shaanxi and Qinghai. China's nickel oxide ore is mainly distributed in the Panzhihua area in southwestern Sichuan and the Yuanjiang area in Yunnan. Due to the low grade of nickel, only small-scale mining is currently available. see picture 1. Figure 1 Distribution map of China's nickel ore resources China's nickel deposits are mainly Jinchuan in Gansu Province, Hongqiling and Yebaisong in Jilin Province, Kalatongke and Huangshan in Xinjiang Uygur Autonomous Region, Lengshuijing and Yangliuping in Sichuan Province, and Baimazhai and Mojiang in Yunnan Province. . Except for the Jinchuan deposit, most of the deposits have small reserves, low grades, poor natural environment, high difficulty in mining and high cost. There are not many cobalt mine resources in China. There are no independent cobalt deposits. The total reserves of cobalt in the country are 470,000 tons, and Gansu Province accounts for 30% of the country's total reserves. Cobalt resources are mainly associated with iron , copper, nickel and other deposits, which is difficult to develop. Due to the low cobalt grade, cobalt metal is mainly extracted from heavy metal smelting processes such as nickel and copper and cobalt is recovered from chemical systems. The cobalt metal reserves of Jinchuan Company rank first in China for the development and utilization of cobalt resources. (II) Supply of nickel-cobalt metal in China The production of nickel products in China is relatively concentrated, mainly in Gansu, Jilin, Xinjiang, Yunnan, and Sichuan. The main manufacturers are: Jinchuan Group Co., Ltd., Jilin Jien Nickel Industry Co., Ltd., Xinjiang Nonferrous Metals Industry (Group) Ji Kang Smelter. In 2004, the amount of nickel (metal amount) produced by China's mineral products was about 80,000 tons, including 3000 tons in Xinjiang, 5800 tons in Jilin, and 71,000 tons in Gansu. Nickel production in Gansu (Jinchuan) accounts for more than 88% of China's nickel production. In recent years, China's nickel production is shown in Figure 2. Figure 2 China's nickel production in recent years China's nickel production is expected to be 107,000 tons in 2005, including 3,500 tons in Xinjiang, 6,000 tons in Jilin, 91,000 tons in Gansu, and 6,500 tons in other regions. See Figure 3. Figure 3 China's nickel production forecast for 2005 In 2004, China's cobalt production was about 7,500 tons, of which Jinchuan cobalt production was 2,200 tons, accounting for 29.3%. In 2005, China's cobalt production will maintain a level of 7,500 tons, and Jinchuan cobalt production will be 4,000 tons. China has become one of the world's major cobalt producers. (III) Status of China's nickel-cobalt consumption In 2004, China's nickel consumption exceeded 140,000 tons, as shown in Table 1. The changes in nickel consumption in recent years are shown in Figure 4. Table 1 China's nickel consumption in 2004 (tonnes) Figure 4 China's nickel consumption from 1998 to 2004 In 2005, China's nickel consumption is expected to reach 170,000 tons. In China's nickel consumption structure, stainless steel accounts for 51.3%, batteries account for 8.4%, electroplating accounts for 26%, non-ferrous alloys account for 8.5%, and others account for 5.8%. According to Barclay's data, in the international market, stainless steel accounts for about 65% of nickel consumption, 12% of non-ferrous alloys, 8% of electroplating, 5% of chemicals and others, and 10% of others. The consumption structure of nickel in China and the world is shown in Figure 5. Figure 5 Consumption structure of nickel in China and the world (right) The main reason for the difference between China's nickel consumption structure and the world's nickel consumption structure is that China's manufacturing industry consumes more nickel than other countries and regions in the world, and this difference will still exist in the next few years. From 1998 to 2003, the average annual growth rate of China's cobalt consumption was about 20.7%. In recent years, the rapid development of China's electronics industry has led to an increase in the consumption of cobalt. In 2004, China's cobalt consumption was close to 9,000 tons. It is estimated that the consumption of cobalt in 2005 will be close to 10,000 tons. The consumption structure of cobalt in China is shown in Figure 6. Figure 6 China's cobalt consumption structure (4) Forecast of China's nickel-cobalt consumption in the next five years 1. Macroeconomics China's macroeconomic policies and economic performance determine the future consumption and supply of nickel. The unfavorable factors and favorable factors are as follows: Disadvantages: (1) In the next five years, the Chinese government will continue to implement structural regulation in the economic field, accelerate the transformation of economic growth, and vigorously promote the national policy of resource conservation and environmental protection. Some of the recent rapid growth of the industry growth rate of steel, electrolytic aluminum, cement, real estate and other industries were controlled for example, which will allow fixed asset investment growth has slowed down. The growth rate of investment in China's fixed assets is shown in Figure 7. Figure 7 Changes in the growth rate of investment in China's fixed assets (2) Due to the high price of nickel in the past three years (2003-2005), alternative materials such as 400 series stainless steel appeared, which slowed down the demand for nickel. (3) Due to the appreciation of the renminbi, the growth rate of exports of manufacturing products will slow down, which will also affect the demand for nickel. The change in China’s exports is shown in Figure 8. Figure 8 China's export volume changes Favorable factor (1) The Chinese government will focus on solving the income of farmers and low-income groups, and the social purchasing power will be enhanced. A new round of consumption upgrade will stimulate the growth of nickel consumption. The retail sales of consumer goods are shown in Figure 9. Figure 9 Changes in total retail sales of consumer goods in China (2) As the price of nickel declines in the future, the consumption will increase. (3) Although the Chinese steel industry temporarily restrained certain consumer demand due to the state's macroeconomic regulation and control, this is a new round of adjustment in the rising stage, and the overall steel consumption will continue to grow steadily (see Figures 10 and 11). After the adjustment period of the next two to three years, the growth pattern of the steel industry will change, the consumption structure will maintain multiple levels, diversity, and gradually evolve to a higher level; in addition, China's industrialization and urbanization will also drive Steel demand. In the long run, China is still one of the most dynamic regions in the world for steel consumption, which is one of the main positive factors for the nickel industry. Figure 10 China's steel consumption and consumption growth rate Laser Engraving And Cutting Machine Laser Paper Cutting Machine,Cnc Fiber Laser Cutting Machine,Aluminum Laser Cutting Machine,Portable Laser Metal Cutting Machine Jinan Bodor CNC Machine Co., Ltd. , https://www.lasercuttings.nl