Nickel - SHMET Import Market Briefing

Date 11/13/2017 5:19:44 PM Source: SHMET

With regards to NI FP, offers in Shanghai bonded zone keep standing at the range of $300-$360, and so does CIF delivery. The SHFE Spot/LME 3M arb for Russian NI was stable, at 8.06 and that for 3M SHFE/LME at 8.05, equated to a loss of RMB442/mt in spot and a loss of RMB1178/mt 3M forward.

Electrolytic nickel output growth is limited and NPI will decline because of the upcoming production limitations in Shandong region. There is a certain pressure in supply. Nickel plate is expected to further destock in the future and structural squeeze opportunities emerge. In terms of consumption, stainless steel supply will increase in the future, mainly due to the backflow of Qingshan stainless steel in Indonesia. The market continuously reduce December futures price and 304 futures price has been cut by nearly 1,000 yuan/ton since the beginning of the month, with price being sharply reduced in the short-term. There is no obvious improvement in the whole market transactions.


Edited by SHMET