SHANGHAI, Nov 21 (SMM) – Premiums of spot nickel over exchange prices fell on Thursday morning, as supply increased after some cargoes flowed in from exchange warehouses.

In Shanghai spot market, Russian nickel was quoted in a premium of 2,000-2,200 yuan/mt over the Shanghai Futures Exchange nickel contract for December delivery, down from 2,400-2,500 yuan/mt in the previous morning.

The premiums for Jinchuan materials came in at 6,900-7,300 yuan/mt, lower than 8,300-8,500 yuan/mt on Wednesday morning. Jinchuan premiums had been rising on tighter supply after the delivery of the SHFE 1911 contract.

The Chinese producer Jinchuan, meanwhile, lowered its quote for Shanghai by 2,000 yuan/mt to 122,500 yuan/mt, ex-factory.

As of November 21, SMM assessed 1# refined nickel at 116,800-122,300 yuan/mt, the lowest in more than three months.

Spot prices tracked losses in futures, with the most active SHFE nickel contract for February delivery slipping to its lowest since end-July at 112,300 yuan/mt at noon.

Despite the plunge in prices, demand for nickel failed to improve substantially, spot traders told SMM, as downstream consumption is weakening towards the year-end.

Bearishness across the market also kept buyers on the sidelines.