Shanghai bonded nickel stocks extended decline as import arbitrage window remained closed

SHANGHAI, Oct 25 (SMM) – Inventories of refined nickel in the Shanghai bonded areas continued to fall this week, as the improvement in the SHFE/LME nickel price ratio was not strong enough to open the import arbitrage window.

SMM data showed that Shanghai bonded nickel stocks fell by 1,900 mt, or 8.6% from a week ago to 20,100 mt as of October 25.

Briquettes accounted for 5,100 mt, down 400 mt week on week.

Outbound shipments contributed to the decline in Shanghai bonded stocks, as the backwardation on LME nickel and sharp declines in LME inventories drove deliveries to LME-approved warehouses.