[Ni] Nickel Imports in March Indicate Ample Supply

SHANGHAI, Apr. 23 (CBI China) -- Imports of pure nickel were 12,620mt in March, up 26% compared to 9,808mt in March 2008, but down 0.5% compared to 12,690mt in February 2009.

    The market players predict total imports in March will increase significantly compared to Febraury, and traders in Zhejiang province even predicted the imports will likely to reach 18,000mt.

    The production has been improved sharply at domestic steel mills in 1Q compared to 4Q last year, and various factors indicate the demand for nickel has improved as well. However, the producers prefer to purchase the cheapest raw materials, so imported nickel will have no advantages to be the first target for steel mills, and the imported ferronickel will also take up a large part of market shares in March. Meanwhile, domestic nickel and ferronickel supply owns some market shares as well.

    Trade volumes of pure nickel were 6,906mt in March in East China, with daily trade volume of 300mt, indicating a part of imported nickel has transferred to the inventory apart from some long-term orders of steel mills, so domestic spot inventories remain on high level as well.

    Chinese demand has recovered, but it will still be weak due to ample nickel supply.

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