SHANGHAI, Apr 20 (SMM) - SHFE nickel continued to move upwards yesterday and gained more than 6% in intraday trading, recording six consecutive days of increase. As of yesterday noon, SHFE nickel closed up 3.44% at 239,830 yuan/mt. Spot market

The average spot price of SMM1# refined nickel was 247,850 yuan/mt yesterday, up 4.51% from the previous day.

Jinchuan nickel was quoted between 247,000-249,500  yuan/mt, with the weekly average price up 9,750 yuan/mt on a daily basis. Norilsk nickel was quoted between 246,200-248,200 yuan/mt, up 12,300 yuan/mt on a daily basis.

Nickel briquette was quoted between 237,000-239,500 yuan/mt, with the weekly average price down 250 yuan/mt. At present, domestic pure nickel is in a shortage. The production reduction by domestic nickel smelters and import losses have provided strong support to nickel prices. The continuous rise of SHFE nickel also reflects the current supply scarcity. Rising SHFE nickel will improve the SHFE/LME nickel price ratio, thereby opening the import window.

Pure nickel inventories continued to decrease amid tight supply and rigid demand. Nickel sulphate market performed poorly. Nickel salt plants are struggling in losses and thus lowered output, while end consumption declined. NPI and stainless steel markets are relatively stable at present. NPI supply gradually increased with the end of the rainy season.

The import window is likely to gradually open amid rising SHFE nickel, but nickel prices may pull back after supply picks up.