Shanghai bonded nickel stocks continued to fall as pandemic reduced arrivals

SHANGHAI, Apr 3 (SMM) – Inventories of refined nickel in the Shanghai bonded areas fell for a second straight week this week, as arrivals were reduced with the coronavirus constraining logistics.

Deliveries to the domestic market with exchange rates locked in when the arbitrage window was briefly opened last week, also contributed to the bonded inventory decline this week.

SMM data showed that inventories of pure nickel in the Shanghai bonded areas declined 700 mt in the week ended April 3 to 18,600 mt, with stocks of cathode shrinking 600 mt to 16,700 mt.

With consumption recovery accelerating the decline in nickel inventories across domestic markets, trades in the bonded areas are set to be brisk when the import arbitrage window is reopened.