Tight supply keeps Norilsk nickel premiums firm

SHANGHAI, Mar 20 (SMM) – Norilsk nickel traders in the Shanghai spot market were keen to hold their offers firm on Wednesday morning, given tight supplies across the market.

In Shanghai, Russian materials traded at a premium of 2,700 yuan/mt over the April contract on the Wuxi Stainless Steel Exchange this morning, unchanged from Tuesday. High premiums and stronger prices of futures affected trades.

Premiums of Jinchuan nickel came in at 3,200 yuan/mt, lower than 3,200-3,400 yuan/mt in the previous day, as tepid purchasing enthusiasm among downstream consumers and increased supplies prompted sellers to lower offers.

Jinchuan offered cargoes at 105,500 yuan/mt ex-factory this morning, up 1,000 yuan/mt from Tuesday.

Spot nickel deals were mostly heard at 105,000-105,500 yuan/mt in Shanghai on Wednesday morning.