SHANGHAI, Jun 23 (SMM) - Nickel prices have begun to correct down since June 9, falling over 4% in a single day as of CST 18:11 yesterday. SHFE nickel hit a new low since March 3 at 190,010 yuan/mt, while LME nickel fell to a low since since March 1 at $25,000/mt.
The average spot price of SMM1# refined nickel was 205,550 yuan/mt yesterday, down 1.28% from the previous day. Jinchuan nickel was quoted at an average premium of 11,000 yuan/mt, down 250 yuan/mt on a daily basis. Norilsk nickel was quoted at an average premium of 5,500 yuan/mt, down 250 yuan/mt on a daily basis. The decline in premiums was mainly due to falling SHFE nickel and poor trades.
Some deliverable brand nickel flowed into the spot market following delivery of SHFE 2206 nickel contract, which coupled with inflows of imported nickel, eased supply tightness.
However, as SHFE nickel inventory dropped to a historically low level, nickel prices found some support. Given stable supply-demand situation, SMM expects macro factors to pressure nickel prices in the short term.