SHANGHAI, Jan. 30 (SMM) --
Goldman Sachs: Increasing Cancelled Warrants Hint Possible Nickel Price Hike
Goldman Sachs recently reported that nickel inventories will fall as cancelled warrants have increased. Therefore, it is too early to say that nickel prices will fall.
Goldman Sachs analyst Max Layton predicts that the US and European stainless steel producers may replenish stocks in 1Q. Nickel supply surplus in 2013 is expected to be 35,000 mt, while nickel supply surplus in 2012 is 47,000 mt. Goldman Sachs reports that China’s NPI production costs are USD 15,000/mt. Over supply of nickel will be digested by stainless steel exported abroad, which will divert nickel into overseas market.
Tsingshan Group NPI Purchases
According to SMM sources, Tsingshan Group has purchased NPI (Ni 10-15%) at RMB 1,170/mtu (cash, delivering to Tianjin port).
Stainless Steel Mills Release February NPI Bidding Prices, NPI Producers Reluctant to Move Goods
Last week, China’s major stainless steel mills released February NPI procurement prices, and the procurement prices slightly fell.
NPI producers did not react strongly after stainless steel mills cut NPI prices due to several reasons as reported by SMM sources. First, excluding long-term contract NPI producers, most NPI producers will not be experiencing tight cash flows in early February. Second, NPI producers have been controlling inventories and have no pressing need to move goods now.
China Finds 5.4 Billion mt of Iron Ore and 370,000 mt of Nickel Ore Resources
After three years’ exploration and with total investment of RMB 17.5 billion by China’s central government, China has found 132 billion mt of coal resources, 5.4 billion of iron ore resources, 100 million mt of manganese resources, 2.36 million mt of copper resources, 4 million mt of lead and zinc resources, 700 million mt of bauxite resources, 370,000 mt of nickel resources, 200,000 mt of tungsten resources, 1.55 million mt of molybdenum resource and 604 mt of gold resources in 2012.