This round of SRB buying will see more than 30,000 tonnes of nickel stockpiled in the first half of this year, according to market rumours. It is also believed that the SRB will buy another 30,000 tonnes of refined nickel from the Chinese spot market in the second half of the year.
However, London Metal Exchange and Shanghai Futures Exchange nickel prices will get very limited support from the SRB’s stockpiling, given the huge stocks of nickel around the world.
The China Stainless Steel Exchange is a private exchange based in Wuxi, Jiangsu Province, and is the second most important exchange for Chinese nickel traders.
The rise seen in the refined nickel premium appears to be in line with SRB buying activity, traders said.
Nickel producers Jinchuan and Norisk Nickel supply the most traded and the most liquid brands of refined nickel cathode in Chinese domestic nickel trading.
On March 31,...