SHANGHAI, Nov 8 (SMM) – While operation resumed in October at Jinchuan Group after annual maintenance, premiums of its nickel products in the Shanghai market remained high as of Thursday November 8.
Tight supplies of raw materials curbed the production of type 1 Jinchuan brand nickel, which is used in electroplating, special steel, and batteries. This buoyed overall premiums of Jinchuan nickel.
As of November 8, production of type 1 nickel accounted for some 30% of Jinchuan's total nickel output, compared with a typical proportion of 50-60%, SMM learned. The company also produces type 2 and 3 nickel, each accounting for 30% of overall production, which are used in stainless steel and casting.
Over the Wuxi Stainless Steel Exchange contract for November delivery, premiums of Jinchuan materials were heard at 8,000 yuan/mt on Wednesday November 7, flat from November 6. This compared with some 6,000 yuan/mt a month ago.
Jinchuan offered its cargoes at 106,000 yuan/mt on Thursday, flat from Wednesday, while prices of Norilsk nickel stood around 7,500 yuan/mt lower from Jinchuan nickel.