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Who to become First Foreign Brand for Nickel Deliveries on the SHFE? SMM Exclusive
May 22,2015 14:35CST
smm insight
Source:SMM
Which foreign nickel brand will become the first one to be deliverable on the SHFE?

SHANGHAI, May 22 (SMM) – Which foreign nickel brand will become the first one to be deliverable on the SHFE? 

So far, three major foreign brands are trading in China’s domestic nickel market, namely Russia’s Norilsk nickel, Norway’s Nikkelverk nickel and Japan’s Sumitomo nickel. 

According to SMM sources, Norilsk nickel is the first foreign brand submitting the application for deliveries on the SHFE, followed by Nikkelverk nickel and Sumitomo nickel.

Will Norilsk nickel become the first to be deliverable on the SHFE? 

Norilsk Nickel, the world’s largest nickel producer, does not meet the SHFE’s requirements, with table below showing comparison of Jinchuan nickel and the three major brands in Ni and Co content. 

Jinchuan Nickel Vs. Three Major Foreign Nickel Brands in Key Indicators

Brand

Ni.

Co.

Jinchuan’s Jintuo nickel

99.96%

0.02%

Norilsk nickel

99.94-99.96%

0.04%

Norway’s Nikkelverk nickel

99.98%

0.02%

Japan’s Sumitomo nickel

99.99%

0.00%

It was reported that Norilsk Nickel’s high officials came to Shanghai to discuss with the exchange over its brand registration. The two parties had reached consensus in some aspects, but issues still existed, suggesting that it will still take time for its successful register on the exchange. 

Compared with Norilsk Nickel, Nikkelverk nickel and Sumitomo nickel have no problems in quality standards set by the SHFE. The timing of submission will determine date of its deliveries on the SHFE. 

Hence, SMM foresees that Nikkelverk nickel will become the first, and follow by Sumitomo nickel, and Norilsk nickel to become the last of the three to be deliverable on the SHFE.

The following table shows imports of the three major foreign brands by China in 2014 and the first three months of 2015, according to SMM data.  

Imports of Three Major Foreign Nickel Brands in 2014 and Jan.-Mar. 2015 

Brand

Imports in 2014(tonnes)

Imports in Jan.-Mar. 2015 (tonnes)

Norilsk nickel

73753.302

12432.681

Norway’s Nikkelverk nickel

3641.441

130.445

Japan’s Sumitomo nickel

4414.584

240.703

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