Premiums of Russian Nickel Edge Higher, SMM Reports

Nickel futures prices rose significantly last week and then fell to around 140,000 yuan/mt on February 26, and the spot transactions rebounded. Currently, the downstream industries of refined nickel have fully resumed work, and the orders from alloy casting enterprises are relatively stable as they had restocked before CNY and maintained production in holiday.

Russian nickel was trading at a discount of 300 yuan/mt against the Wuxi Stainless Steel Exchange 1802 contract on Friday February 2 whereas Jinchuan nickel was flat, SMM learned.  

SMM survey finds that nickel purchase managers’ index (PMI) was 43.61% in October. The reading was better than forecast, but was lower than the level seen in September.

Trading sentiment in China’s domestic nickel market was moderate, with SHFE nickel fluctuating.

Nickel Price Advances Following Production Cut News

With the opening of profitable import window for several days, premiums for Russian nickel in bonded area rose rapidly. 

On Tuesday, Jinchuan nickel was offered at premiums of RMB 800/mt over Wuxi’s 1710 nickel, and Russian nickel at premiums of RMB 250-300/mt over the same contract. 

Losses for Russian nickel imports showed signs of narrowing over the past trading days of the week, Shanghai Metals Market survey finds. 

On Monday, inquiries for high-grade NPI fell to 950 yuan per mtu after sharp decline in nickel market last Friday, Shanghai Metals Market learns. 

Jinchuan Group cut nickel ex-works price by 5,300 yuan per tonne on Monday.