Shanghai nickel premiums rise on positive arbitrage but buying interest remains limited

Shanghai nickel premiums ticked higher in the week to Tuesday December 5 amid a positive import arbitrage, but high availability of material, tighter credit and weak downstream demand continue to restrict buying interest for bonded warrants and bills of lading.

Full-plate nickel premiums on a cif Shanghai basis rose to $280-300 per tonne on Tuesday, up from $270-290 per tonne a week earlier, while Shanghai-bonded warehouse premiums increased to $290-310 per tonne, from $290-300 per tonne in the prior week. The import arbitrage between the Wuxi Stainless Steel Exchange December nickel contract and the London Metal Exchange three-month contract remained positive, with profits of around $80 per tonne on Tuesday.  These profits had been encouraging inquiries since Monday, according to two trading sources, who indicated that they concluded deals for refined nickel bonded warrants at above $300 per...


Ellie Wang

December 07, 2017

09:45 GMT