SHANGHAI, Dec. 11 (CBI China) -- As it is the end of the year, nickel ore traders are facing sharp increase in sales pressure due to bank loans. Market insiders said that the major ports are more or less existing nickel pledge, even though some traders have customers, no delivery is for them due to nickel pledge.
Due to limited downstream demand, a large number of nickel ore was difficult to sell, therefore the stock in domestic major ports have been nearly as high as 9 million mt. According to CBI, in Tianjin Port and Rizhao Port, ore pledge has emerged long time ago. At present, even if downstream buyer came to purchase, some traders could not supply, for their nickel ore was pledged by the banks. News from the market that a ship nickel ore in Rizhao Port has been closed by the bank and may be auctioned in the near future.
Some informed people said given the current exceptional market conditions, a small number of traders really have heavy pressure on the funds, banks may adopt a tolerant policy, "the specific problems with specific treatments" in order to minimize the extent of loss of traders.
From different market rumors, at least we can see that the market is very concerned about government regulation and control measures, CBI will continue to report how Port Authority will deal with high nickel deposit in the ports, and when the nickel market will be improved.
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