Spot Nickel Supply to Rise Further

SHANGHAI, May 17 (SMM) - NORNICKEL nickel premiums rose slightly yesterday because the low-priced spots were sold out, while Jinchuan nickel premiums stood flat. In terms of NPI, the recent drop in nickel prices has boosted downstream purchases to a certain extent. The NPI suppliers intended to quote high on limited market supply, but the stainless steel mills pushed for lower NPI prices, resulting in a stalemate between buyers and sellers. On the demand side, according to SMM research, the stainless steel futures prices fluctuated downwards, and the spot market transactions were slack. Downstream companies mainly purchased on rigid demand. Short-term stainless steel spot prices will be stable with occasional falls. To sum up, nickel prices stood low as the trades were made amid the economic recession, but the spot trading picked up. The spot supply will grow further with the inflow of spots for warrant delivery.