SHANGHAI, Nov 22 (SMM) - SMM average price of Ni 1.5% nickel ore stood at $82/wmt on a CIF basis on Friday November 19, flat from a week earlier. The supply and demand were weak in the market.
The transactions on CIF basis were sluggish, and the prices were basically flat on the week. While the prices on FOB basis stood firm.
The FOB transaction prices of Ni 1.3% nickel ore were around $50/mt, while that of Ni 1.4% nickel ore were about $58/mt. The mainstream FOB prices of medium-grade nickel ore increased by about $10/mt.
The major mining areas in the Philippines have entered the rainy season, where the cargo handling and mining progress were impeded. The nickel ore exports from the Philippines fell sharply. The exports will decline further due to the Christmas holiday in December, and the nickel ore supply will be tighter. Thus the mines held the prices firm.
The NPI plants still have nickel ore inventories, and they purchase cautiously to mitigate the cost risks as the prices of NPI and stainless steel are low. The prices of nickel ore are expected to remain volatile in the short term. The ocean freight will stand low despite the rising FOB prices, while the CIF prices may stand stable.