China's nickel pig iron output in 2013 may rise 25 percent more than previously forecast as costs decline, curbing nickel imports, Japan's top producer of the metal said.

China's output of nickel pig iron, a substitute for low-grade ore from Indonesia and the Philippines, will reach 300,000 metric tons in 2013, said Toru Higo, general manager of nickel sales and raw materials at Sumitomo Metal Mining Co.

Sumitomo's October projection was for 240,000 tons. Nickel, used for corrosion resistance in stainless steel, has fallen 11 percent in the past 12 months.