Spot nickel prices flipped into discounts against futures

SHANGHAI, Oct 24 (SMM) – Russian nickel prices in Shanghai spot market flipped back into discounts against futures, as futures on the Shanghai Futures Exchange rose on the shutdown of the Ramu nickel project in Papua New Guinea.

In the Shanghai spot market, Russian nickel was offered in a discount of up to 100 yuan/mt to a premium of up to 100 yuan/mt relative to the SHFE nickel contract for November delivery, compared to a premium of up to 150 yuan/mt on Wednesday morning.

The premium for Jinchuan materials fell from 200-400 yuan/mt a day earlier to 200-300 yuan/mt.

News that Papua New Guinea has temporarily closed the Ramu nickel mine run by Metallurgical Corporation of China after a spill, buoyed SHFE nickel on Thursday, extending gains from Wednesday which were bolstered by a fatal accident at major nickel producer Norilsk Nickel’s mine in Siberia.

The rally in futures prices, together with the wide spread between nickel futures on the Wuxi Stainless Steel Exchange and their counterparts on the SHFE, kept Shanghai spot buyers on the sidelines, resulting in quiet spot trading activities.

Major traders in Shanghai made their offers based on futures on the SHFE