Nickel stocks in Shanghai bonded zone declined, but may grow as demand for nickel briquettes softens

According to SMM, the Shanghai bonded zone nickel inventory was 4,900 mt last week, down 200 mt from the previous week, with nickel briquettes and nickel plates accounting for 1,720 mt and 3,180 mt respectively. This decline primarily resulted from the recent sharp fall in SHFE nickel prices, which made nickel sulphate more expensive than nickel briquettes, briefly creating a profit opportunity for producing nickel sulphate from nickel briquettes. However, as nickel briquettes prices have risen above those of nickel sulphate again, coupled with the ongoing fall in nickel sulphate prices, the demand for nickel briquettes may further weaken. Consequently, it is anticipated that the bonded zone inventory will likely increase.