GLOBAL NICKEL WRAP: Europe premiums rise on diverted stock; arb window closes in China

European nickel premiums climbed in the week to Tuesday June 25 due to tightening availability after some supply was diverted to China, while the import arbitrage window in China closed late last week causing regional premiums to fall.

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...

Published

Violet Li

Orla O'Sullivan

Amy Hinton

June 26, 2019

11:11 GMT

Shanghai, London, New York