Spot nickel trades remain muted as prices extend decline

SHANGHAI, Sep 17 (SMM) – Trades of spot nickel in Shanghai failed to substantially improve, even as prices of futures fell for a second straight day.

While downstream consumers were willing to purchase on demand, overall trades did not see significant recovery. Most trades were done at 135,500-137,400 yuan/mt this morning.

The front-month nickel contract on the Shanghai Futures Exchange for October delivery slipped from 137,700 yuan/mt to 135,000 yuan/mt in morning trade, extending the sharp losses from Monday.

Russian nickel was offered in a slightly larger premium of up to 100 yuan/mt over the SHFE 1910 nickel contract, as the depletion of existing inventories in a closed arbitrage window drove sellers to hold offers firm.

The Chinese producer Jinchuan lowered its offer for nickel plate for Shanghai by 4,600 yuan/mt from the previous day to 135,200 yuan/mt this morning. Small briquettes in drums were quoted at 136,400 yuan/mt.

The premiums for Jinchuan materials over the SHFE 1910 contract moderately expanded to 300-400 yuan/mt.

SMM data showed that stocks of refined nickel in east China, including SHFE warrants, rose 1.9% from September 6 to 81,936 mt as of September 12.

Inventories in Shanghai bonded areas accounted for 29,550 mt, rising 3.7% from September 6.

In the stainless steel market, quotes held stable, with several sellers in Wuxi cutting by 50 yuan/mt for 304 cold-rolled products.