LME nickel prices are unlikely to break out from $6.40-6.60 per lb any time soon, said an analyst. The reason is that neither Western producers nor Chinese nickel pig iron producers are making any attempts to cut back output. “The breakeven point of Chinese NPI producers was supposed to be $17,000 and has been lowered multiple times,” he said. The reality is that only about 20,000-30,000 mtpy of China’s nearly 300,000 mtpy of NPI capacity has been cut and another 90,000 mtpy of new capacity will be added this year. In addition, the ramping up of Goro, Ambatovy and Koniambo is continuing, with the three projects ultimately adding another 180,000 mtpy of new nickel capacity.