SHANGHAI, Aug 23 (SMM) – Premiums of Norilsk nickel in the Shanghai market sharply narrowed on Thursday as more resources entered the spot market amid an open import arbitrage window, SMM research found.
Sluggish trades also forced traders to lower their offers.
Norilsk materials traded at a premium of about 50 yuan/mt over the Wuxi Stainless Steel Exchange September contract, compared to a premium of 200 yuan/mt in the previous day.
Trading liquidity, however, remained thin in the Shanghai market today as lower prices of Jinchuan resources deterred downstream consumers.
Jinchuan offered at 112,300 yuan/mt, 1,200 yuan/mt lower than the prior day. Premiums of Jinchuan cargoes to the Wuxi Stainless Steel Exchange September contract were heard at 1,800 yuan/mt today.
Most transactions in Shanghai were done at 110,100-112,300 yuan/mt today.