Shanghai bonded nickel stocks rose amid muted trades

SHANGHAI, Feb 28 (SMM) – Inventories of refined nickel in the Shanghai bonded areas rose this week, as muted trades failed to offset arrivals.

SMM data showed that inventories of pure nickel in the Shanghai bonded areas increased 1,200 mt from a week ago to 20,200 mt as of Friday February 28, and briquettes accounted for 3,100 mt, up 500 mt from a week earlier.

Trades remained muted in a closed import arbitrage window this week, with import losses narrowing to a weekly average of 1,200 yuan/mt from 1,500 yuan/mt last week. Traders held back from selling at current price levels in view of the high costs for holding nickel briquettes and cathodes.

Deliveries under bill of lading to Shanghai bonded areas are also expected in March.