Refined nickel update: Limited available cargoes after operations halts among traders, spot nickel quotes rose

SHANGHAI, Jan 4 (SMM)—Pure nickel traders have closed their accounts last week. As prices of SHFE nickel continued to fall after speculative funds left the market, some buyers entered the market. Limited quotes combined with scarce available cargoes bolstered spot prices.

On Russian nickel, spot premiums remained over SHFE nickel due to a lack of available cargoes as of Thursday. Jinchuan nickel supply was also sparse. Spot premiums rose to 8,000-10,000 yuan/mt at one point with a small amount of trades. After the manufacturers adjusted prices, premiums for pre-sold goods stood at 5,500-6,000 yuan/mt. With tight supply of mainstream nickel plates, demand for other brands of refined nickel improved.

Premiums of Sumitomo nickel from Japan stood at around  2,300-2,500 yuan/mt, and premiums of Norwegian nickel plates stood at 2800-3000 yuan/mt; discounts of Xinjiang Bofeng under warrants turned into premiums of 100-200 yuan/mt. Spot trades for nickel briquettes were lacklustre as downstream demand has relied on long-term contracts, with premiums stable at 800-900 yuan/mt.

Quotes for Bofeng nickel under warrants and Jinchuan nickel are likely to fall this week, while quotes for Russian nickel will remain firm due to the temporary absence of imports.

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