SHANGHAI, Oct 22 (SMM) – Premiums for Shanghai spot nickel prices over the front-month contract on the Shanghai Futures Exchange shrank on the morning of Tuesday October 22, as downstream buyers turned to offers based on the contract on the Wuxi Stainless Steel Exchange.
Nickel prices on the Wuxi bourse were about 10,000 yuan/mt lower than nickel on the SHFE on Monday October 21, and the spread narrowed to over 7,000 yuan/mt this morning.
In the Shanghai spot market, Russian nickel was offered in a premium of 100-200 yuan/mt over the SHFE 1911 contract this morning, down from 300-400 yuan/mt in the previous day.
Meanwhile, the premium for Jinchuan materials fell from Monday’s 500-600 yuan/mt to 400-500 yuan/mt.
The Chinese producer Jinchuan raised its offer for Shanghai market by 1,000 yuan/mt to 129,500 yuan/mt on Tuesday.
Overall spot trades in Shanghai remained muted, as major traders still based their offers on SHFE nickel.