SMM Exclusive: SRB to Purchase Nickel Reserves-Shanghai Metals Market

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SMM Exclusive: SRB to Purchase Nickel Reserves

SMM Insight 03:58:40PM Jun 05, 2013 Source:SMM

SHANGHAI, Jun. 6 (SMM) - It was reported that the SRB will purchase 30,000 mt of nickel reserves soon, but the SRB has reportedly bought a huge 60,000 mt of nickel reserves since the start of the year.

SMM statistics shows that domestic nickel reserves in trading (bonded zone + CMST) are about 70,000 mt, with the highest for the year of 10,000 mt. If the report proves true, that means the SRB purchases of nickel reserves in a few months amount to the total national trade inventories, equating 1/3 of LME nickel inventories worldwide.

The SRB purchased nickel reserves directly or indirectly at last year’s end and early this year, with total amount of about 30,000 mt proved, but much lower than 60,000 mt.

Market players believe the nickel reserves to be bought by the SRB may fall short of 20,000 mt.
 
SMM thinks the SRB mainly purchased imported nickel last yearend and early this year, but imported nickel prices are unfavorable for now: based on the LME closing price of USD 15,151/mt June 3, order prices are RMB 109,436/mt, and including customs and towing charges, real imported nickel costs will be higher than Jinchuan nickel prices (RMB 106,500/mt on June 3).

As such, SMM believes the SRB will be inclined to domestic nickel reserves over imported nickel.
 

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SMM Exclusive: SRB to Purchase Nickel Reserves

SMM Insight 03:58:40PM Jun 05, 2013 Source:SMM

SHANGHAI, Jun. 6 (SMM) - It was reported that the SRB will purchase 30,000 mt of nickel reserves soon, but the SRB has reportedly bought a huge 60,000 mt of nickel reserves since the start of the year.

SMM statistics shows that domestic nickel reserves in trading (bonded zone + CMST) are about 70,000 mt, with the highest for the year of 10,000 mt. If the report proves true, that means the SRB purchases of nickel reserves in a few months amount to the total national trade inventories, equating 1/3 of LME nickel inventories worldwide.

The SRB purchased nickel reserves directly or indirectly at last year’s end and early this year, with total amount of about 30,000 mt proved, but much lower than 60,000 mt.

Market players believe the nickel reserves to be bought by the SRB may fall short of 20,000 mt.
 
SMM thinks the SRB mainly purchased imported nickel last yearend and early this year, but imported nickel prices are unfavorable for now: based on the LME closing price of USD 15,151/mt June 3, order prices are RMB 109,436/mt, and including customs and towing charges, real imported nickel costs will be higher than Jinchuan nickel prices (RMB 106,500/mt on June 3).

As such, SMM believes the SRB will be inclined to domestic nickel reserves over imported nickel.