SHANGHAI, May 11 (SMM) – SHFE 1507 nickel contract prices also rose significantly and hit a new high of RMB 115,300/mt. Trading volumes of the most active SHFE nickel contract surged 1.75 million lots in the first four days last week to 3.15 million lots, while positions dropped 692 to 125,278.

In China’s spot nickel markets, SMM #1 nickel prices averaged RMB 104,100/mt last week, up RMB 5,012/mt. Jinchuan Group was uninterested in selling, and the resultant tightening in spot nickel supply drove up prices. Demand declined as downstream buyers abstained from buying at highs. Jinchuan Group adjusted price offers four times last week, allowing the quotations to increase RMB 8,700/mt to RMB 110,000/mt.

Spot nickel prices in China are expected to rise further to RMB 112,000-116,000/mt.