SHANGHAI, Feb. 2 (SMM) – The average price of SMM #1 refined nickel lost RMB 1,450/mt from a week ago to RMB 106,790/mt last week. Supply was abundant in domestic market due to increasing shipments from Jinchuan Group and inflow of imported nickel. Trading was thin. As a consequence, premiums continued to shrink over the most active nickel contract on Wuxi electronic trading. Jinchuan Group adjusted nickel prices three times to close the week flat at RMB 108,000/mt.
Weakening Chinese yuan has slowed the inflow of imported nickel, but nickel supply in China continued to grow. Some Chinese stainless steel mills will close for maintenance during the Chinese New Year holiday, which will cut nickel demand. As such, spot nickel prices in domestic market are expected between RMB 106,500-109,000/mt this week.