Nickel flowing into LME warehouses from Shanghai amid prevailing discounts in China

Around 15,000-30,000 tonnes of nickel cathode has been transferred from the Shanghai bonded zone to London Metal Exchange-registered warehouses in Southeast Asia since September amid attempts by market participants to avoid incurring steeper losses by importing the metal into China against prevailing discounts, sources told Fastmarkets.

Nickel stocks in the Shanghai bonded zone totaled 22,600-31,600 tonnes on September 30, an increase of 12.4% from 19,600-28,600 tonnes at the end of August, according to Fastmarkets’ latest assessment. Market participants attributed the month-on-month rise primarily to a closed import arbitrage window. The window to import nickel into China closed in late July and importers stood to lose around 5,000-6,000 yuan ($707-848) for each tonne of nickel plate cathode brought into the country on Monday October 21, trader sources said. “In September, overall nickel stocks in the bonded zone did go up, but we have seen noticeable drops in...

Published

Violet Li

October 22, 2019

07:57 GMT

Shanghai