SHANGHAI, Jul. 24 (SMM) – The import window of nickel has finally turned favorable in recent two weeks, and trading sentiment in imported nickel market improved as a result, Shanghai Metals Market reports.
The nickel import window briefly opened at the very beginning of the year, but remained unfavorable since then, despite nearer to the break-even point several times.
In recent two weeks, Chinese yuan strengthened from 6.92 to 6.77 after continues declines in the dollar market, and this, coupled with fundamentals in China’s nickel market improving, created import opportunities for nickel.
SMM learns that the opening of profitable import window activated trading sentiment in the imported nickel market, and prices for goods under warehouse warrants and the bill of lading advanced to $190-200 per tonne, with some traded prices up to around $210 per tonne.
SMM survey also finds refined nickel inventories in bonded area held by C. Steinwegc Logistics were down 2,000 tonnes to 35,000 tonnes, a sign of shift of some inventories from bonded area to China’s spot market.
Inventories at CMST’s warehouses have fallen below 40,000 tonnes in July, and downstream buying interest picked up after LME nickel’s fallback from highs, and some spot traders turned unwilling to sell goods. Last Friday, discounts of Russian nickel narrowed and gradually disappeared.
SMM expects premiums for imported nickel to keep rising this week, citing moderate demand and falling inventories.
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