Import Window Remained Open to Drive Continued Declines in Pure Nickel Inventory from Bonded Zones

SHANGHAI, Sep 10 (SMM) – According to SMM survey, import profits rose as the SHFE/LME nickel price ratio advanced this week. In addition, traders that had locked in the SHFE/LME price ratio last week moved goods into the domestic market for delivery. Therefore, pure nickel inventory in bonded areas continued to decline this week.

Recently, the contango structure on LME nickel has turned into a backwardation structure. Quotes under bill of lading for nickel plate have been quiet recently. Quotes for nickel briquette were in a large range of $250-400/mt.

Domestic stainless steel companies are currently reducing output. But SMM expects that output plans for nickel sulphate for September will continue to rise, securing demand for nickel briquette. Meanwhile, the SHFE/LME price ratio will ensure opportunities for imports. As such, there will be inflows of some bonded zone inventories next week.