SHANGHAI, Sep 17 (SMM) – Affected by the sharp reduction in stainless steel output in China this past week, the domestic nickel price trended lower this past week. This combined with big import profits drove large influx of imported nickel. As such, the SHFE/LME nickel price ratio fell rapidly.
Nonetheless, there was still an inflow of 1,600 mt of pure nickel into the bonded area, most of which was spot cargoes. The current quotes for imported nickel are still limited in the market.
The reduction in stainless steel output will intensify next week, and the marginal demand for pure nickel will decrease. However, due to the current decline in pure nickel inventory in China, it is expected that the nickel price ratio will rebound in the future.