SHANGHAI, Jan. 30 (SMM) – According to SMM sources, Baosteel Resources increased supply of nickel from South Africa in order to meet pre-holiday stock replenishment demand from downstream producers. As South African nickel was offered at lower prices, downstream producers preferred to purchase low-price South African nickel.
However, as South African nickel is unable for arbitrage transactions in domestic electronic exchanges, volumes of South African nickel circulating in market is limited.
According to sources from Baosteel Resources, the company still has channel to import nickel from South Africa, and supply of such nickel will not change much.
