Rising SHFE Nickel Prices Seriously Suppress Nickel Demand

SHANGHAI, Feb 22 (SMM) - On February 22, premiums of Jinchuan nickel were 6,000-6,300 yuan/mt. The average premium stood at 6,150 yuan/mt, down 500 yuan/mt from the previous trading day. NORNICKEL nickel was quoted at premiums of 4,000-4,300 yuan/mt, with an average premium of 4,150 yuan/mt, down 600 yuan/mt from a day ago. Recently, the nickel futures prices have hovered around high levels, which seriously curbed the downstream demand. The upstream companies were more willing to ship, thus the spot premiums plunged into a free fall today. The prices of nickel briquettes were 211,300-212,300 yuan/mt, down 100 yuan/mt from the previous trading day. Nickel briquette trading was poor as the prices were still higher than the nickel sulphate prices.