Arbitrage loss sends both Chinese nickel premiums down
European premiums rise with some supply being diverted to Asia
US briquette premiums slid on lackluster demand
European cathode premiums rise on increased demand, tightness
European full plate and 4x4 cathode premiums rose on Tuesday due to stock flows out of the region amid market participants’ reports of increasing Chinese demand for cathode material.
"I'm not sure if the arbitrage is still there, or if the material would make it to Shanghai on time, but at least some units are going to China and have gone from the market here [in Europe], so that gives some support [to premiums] medium term, at least," one European trader said.
Shipments of nickel leaving London Metal Exchange Rotterdam warehouses are increasing, giving rise to tightness across both grades. Some 282 tonnes of material left Rotterdam as of 9am on Tuesday with a further 2,268...