Nickel ore quotations rose sharply, shipping rates unlikely to fall in short-term

SHANGHAI, Jun 29 (SMM) - The average cif price of 1.5% nickel ore stood at $69/wmt last Friday, an increase of $5/wmt from a week earlier.

Quotes rose amid scarce available cargoes. As of Friday, cif quotes for 1.5% nickel ore stood at $73/wmt, and are likely to move higher. Traded prices at major big manufacturers stood at $66-68/wmt.

Quotes for high-grade NPI rose significantly. Expectations of higher NPI profits bolstered ore prices.  The recent domestic NPI production schedules are high and many production lines were added or resumed, growing demand for raw materials to the peak of the year. Although the supply side has increased significantly in recent months, demand for stockpiling is also large. Prices of ore will have ability to rise further. Cif quotes for 1.5% ore are expected to stand at $69-73/wmt.

Shipping rates from the Philippines to China on June 25 stood at $21.75-22.05/wmt (the Philippines to southern Chinese ports-the Philippines to northern Chinese ports), flat from a week earlier. Stranded ships at some domestic ports like Guangxi will keep shipping rates from falling from high levels in the short term.