Shanghai bonded nickel stocks fell 600 mt on week despite deeper import losses

SHANGHAI, Jun 5 (SMM) – Inventories of refined nickel in the Shanghai bonded areas dipped 600 mt in the week ended June 5 to 14,800 mt, showed SMM data.

A delivery of 600 mt of plate-shaped nickel cathode, which is expected to directly go to domestic users, accounted for this week’s decline in bonded stocks, as the previously locked-in exchange rate helped the transaction avoid a deepening of import losses caused by the lower ratio of SHFE nickel prices to its LME counterpart.

LME nickel strengthened this week, while SHFE nickel moved sideways, bringing the potential loss on imported nickel to around 3,000 yuan/mt and muting trading activity.

Stocks of nickel briquettes in Shanghai bonded areas remained unchanged at 1,700 mt this week.