SHANGHAI, Aug 17 (SMM) - SMM prices of Ni1.5% ore average stood at $84/wmt on a cif basis on August 13, unchanged from a week earlier.
Trades were subdued as NPI plants restocked as needed to lower cost risks amid high ore prices. Traded prices of Ni1.3% ore rose to $71/wmt on a cif basis, and those of Ni1.4% ore stood at $80/wmt, which is not the mainstream amid limited availability of cargoes. Ni1.5% ore was quoted at $90/wmt on a cif basis, higher than the mainstream market price.
The acceptance of high-priced nickel ore has declined as prices of NPI lacked impetus to rise. However, the release of port inventories has been slow. Tight supply and the wet season in the Philippines in October will improve the accepted prices by NPI plants. Ni 1.5% ore prices from the Philippines are expected to stand at $85-90/wmt this week on a cif basis.
Shipping rates from the Philippines to China on August 13 stood at $21.75-22.05/wmt (the Philippines to southern Chinese ports-the Philippines to northern Chinese ports), flat from a week earlier.
The current crude oil prices have fallen but remain high compared with the beginning of the year. Meanwhile, strict inspections of ore ships and slow cargo loading and offloading extended turnover cycle of cargo ships. The number of ships going to and from countries with severe pandemic like Southeast Asian countries decreased, raising shipping costs. Shipping rates are expected to remain high.