MANILA, Nov 11 (Reuters) -
* Global Ferronickel Holdings Inc FNI.PS , the Philippines'
second-biggest nickel ore producer, said on Wednesday it had
agreed to sell 1.3 million wet metric tonnes of the stainless
steel raw material to China's Baosteel Resources International
Co Ltd for delivery next year, 30% higher than this year's
volume
* The quick economic rebound in China from the COVID-19
pandemic
shock has boosted demand for nickel ore in the world's top
producer of stainless steel, and the recovery is expected to
accelerate in 2021, said Global Ferronickel President Dante
Bravo
* "Given those prospects, we are very bullish in the nickel
space," he said in a statement following the signing of an
annual purchase agreement
* Should the company's stockpile inventory allow, half of
the
shipment will be composed of low-grade nickel ore with 0.90%
nickel content and 49% iron content, while the remainder will be
medium- to high- grade nickel ore with 1.30%-1.80% nickel
content and 15%-25% iron content, it said
* Delivery is expected to commence in April when the dry
season in
the Philippines, a major nickel ore supplier to China, starts
and the selling price of each shipment will be set on a monthly
basis according to the prevailing market price at the time of
price setting
* Baosteel Resources is a wholly-owned subsidiary of the
world's
biggest steelmaker China Baowu Steel Group 600019.SS