SHANGHAI, Jan 15 (SMM)—Prices of 1.5% medium-grade nickel ore dropped to $65.5/wmt CIF in end-December, down 14.5% on the month. Mainstream transaction prices were not formed amid a few shipments from small-scale mines. With the disorderly market quotations of nickel ore, the mines’ acceptance for prices varied.
Some mines in North Philippines stopped all shipments as the bids were lower than their expectation. Therefore, the bookable shipments for January were rare in December. The Zambales mine started bidding in late December. As the mines’ accepted FOB price of 1.5% medium-grade nickel ore stood at $60/wmt, the CIF price was estimated over $70/wmt, and the corresponding cash cost of ferronickel reached 1150 yuan/mtu, which was hardly accepted by domestic ferronickel plants.
However, due to the rainy season and limited ore resources in the Philippines, the mines were reluctant to reduce quotations, so nickel ore prices would stand high in the short term. As the FOB prices has rebounded for the shipments, domestic CIF prices would be higher. The price of nickel ore is in a game state, and is likely to fluctuate at this level. In the rainy season, the price of nickel ore is less likely to fall. In January, the price of 1.5% medium-grade nickel ore is expected to stand at $65/wmt CIF and above.
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