Singapore 18/02/2016 - Eramet’s nickel production, which includes ferronickel and nickel matte, fell three percent to 53,369 tonnes in 2015, the French nickel and manganese producer said on Wednesday.
The decline comes on a reduction in production in New Caledonia, which together with falling nickel prices, resulted in a 261 million euros ($291 million) operating loss at Eramet Nickel in 2015.
Sales at the company’s nickel unit fell 12 percent to 686 million euros, though sales of finished nickel products rose two percent to 54,590 tonnes in the year.
Eramet posted an overall net loss of 714 million euros last year, after accounting for 668 million euros of asset impairment and tax receivables.
“The slowdown in China and massive overproduction in recent years have led to a huge crisis in the metal sector, and all industrial players have been hit hard,” said Patrick Buffet, Eramet’s chairman and CEO.
Eramet also noted that world stainless steel production in 2015 was steady, relative to annual growths of 6-9 percent in 2010-2014.
Faced with the scenario, Eramet said it has made a number of decisions. This included the restriction of industrial investment, suspension of major group projects and ongoing asset disposal. It also aims to reduce cost and boost production by 360 million euros – of which it has already achieved half the target – and also cut costs and boost production at Société Le Nickel (SLN), its New Caledonia nickel smelter.
In December, Eramet denied media reports which claimed it was halting nickel production SLN, but said it was considering switching to producing ferronickel from nickel matte at the subsidiary.
The London Metal Exchange nickel price was last at $8,340 per tonne on Thursday, down $65 from its Wednesday close, after falling to $7,550 last week, its lowest in 13 years.