SHANGHAI, Nov. 10 (SMM) – Nickel inventories in China are expected to continue growing after hitting the highest level of 2015 in November, Shanghai Metals Market foresees.
According to SMM survey, nickel inventories at CMST Development (Shanghai)’s warehouse grew to 70,000 tonnes in early November, up 5,000 tonnes from early October’s, and up 40,000 tonnes from the beginning of 2015, the highest of 2015.
Inventories of imported nickel in Shanghai bonded area increased to 72,000 tonnes during the same period, up 37,000 tonnes from early year’s, according to SMM data.
The approval of Russian nickel for trading on the SHFE and a favorable price ratio earlier boosted demand for imported nickel. China registered an 83.62% year-on-year rise of refined nickel imports during the first nine months of 2015, based on SMM statistics.
“The recent rise in the Shanghai/LME nickel price ratio is expected to allow more imported goods to enter the domestic market,” SMM nickel analyst says.
The Shanghai/LME nickel price ratio rose significantly recently, helping narrow import losses from a high of 2,096 yuan to 258 yuan per tonne last week, with weekly losses around 743.57 yuan per tonne, according to SMM data.
“Weak demand, on the other hand, also gives no help to alleviate the heavy inventory pressures,” SMM adds.
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