China's Nickel Ore Stocks 'As Much As 10m mt'

SHANGHAI, Sept. 29 -- China's nickel ore stocks at ports have risen to as much as 10 million mt due to the recent weakening in nickel prices and stainless demand, according to traders.

    The figure is far higher than the 6-7 million mt held from January to April, but is not expected to affect the market or nickel ore prices significantly, the traders said.

    The traders' estimate for nickel ore inventory at ports is also up from the 8.8 million mt estimated by Shaanxi Energy Metals & Minerals Resources Co chairman Zhong Yongqi, which traders felt was conservative.

    The 8.8 million mt includes 1.65 million mt at Tianjin port, 4.6 million mt at Rizhao and Lanshan port, and 1.2 million mt at Lianyungang port, Zhong told delegates at CBI's International Nickel and Chromium Industrial Summit in Qingdao, Shandong province, last week.

    But, he agreed that the high inventory level would not put pressure on nickel ore prices.

    Nickel ore prices will be supported for the rest of the year by recovering freight rates, the stability of nickel prices at around USD 18,000/mt and the improving economy, he said.

    Nickel ore containing 2% nickel is being offered at around USD 500/wmt CFR China and, given that freight rates are still around half that of last year, "prices of lateritic nickel ore have a lot of room to increase", he said.

    The Philippines to China freight rate is around USD 14-15/mt and the Philippines-China rate is around USD 11-12/mt, down from last year's average rate of USD 40-45/mt and USD 25-26/mt respectively, he noted.

    (Source: Metal Bulletin)