SMM Daily Review - 2012/6/28 Nickel Market

Nickel futures prices rose significantly last week and then fell to around 140,000 yuan/mt on February 26, and the spot transactions rebounded. Currently, the downstream industries of refined nickel have fully resumed work, and the orders from alloy casting enterprises are relatively stable as they had restocked before CNY and maintained production in holiday.

The spokesman of the 19th CPC National Congress will hold a press conference today.

EIA’s crude oil inventory posted the biggest declines, and losses in NYMEX crude oil narrowed.

Trading sentiment in China’s domestic nickel market was moderate, with SHFE nickel fluctuating.

Nickel producers in Shandong’s Linyi are required to cut output by 50% in the following 4 months, which is more significantly than expected.

Nickel Price Advances Following Production Cut News

Base metals rose due to expectations that China’s economy is growing steadily and progress of US tax reform.

With the opening of profitable import window for several days, premiums for Russian nickel in bonded area rose rapidly. 

One medium-to-large NPI producer in north China bought Ni 1.5% ore at CIF price of $38 per wet tonne, Shanghai Metals Market learns.

CIF price for Ni 1.5% ore has kept falling since mid September due to falling nickel price, ample ore supply and low buying interest at NPI producers.