SHANGHAI, Oct 17 (SMM) – Even as prices of futures dropped about 3%, spot nickel trades across Shanghai were muted in the morning of Thursday October 17, pointing to a pessimistic outlook across the market.
The nickel contract on the Shanghai Futures Exchange for November delivery plunged about 3% to the lowest since September this morning.
In the Shanghai spot market, Russian nickel was quoted in a premium of 300-400 yuan/mt over the SHFE 1911 contract, up from 200-300 yuan/mt on Wednesday morning.
Premiums for Jinchuan materials were heard in a range of 400-600 yuan/mt, as some traders lowered their quotes to a premium of 400 yuan/mt to discharge cargoes.
The producer Jinchuan raised its offer by 3,000 yuan/mt to 131,700 yuan/mt today.
Sellers insisted on higher premiums, while buyers remained on the sidelines. This resulted in a quiet market this morning, compared with brisker transactions earlier this week.