GLOBAL NICKEL WRAP: Negative arbitrage pressures China nickel premiums lower

A negative arbitrage between the London Metal Exchange and Shanghai Futures Exchange resulted in lower premiums for all nickel grades in China in the week to Tuesday July 7, while other regional premiums remained unchanged.

  • China trading interest wanes amid long-lasting negative LME/SHFE arbitrage, prompting lower premiums
  • European spot buying remains lackluster with scant deals reported in already-low ranges
  • US Independence Day holiday keeps participants out of the market and premiums subsequently flat
China premium dips amid poor arbitrage
The Shanghai nickel premiums dipped in the week to  July 7, with the long-lasting negative arbitrage between London and Shanghai weighing down the market, Fastmarkets learned.
Fastmarkets assessed the nickel, min 99.8%, full plate premium, cif Shanghai at $110-140 per tonne on Tuesday, widening downward by $10 per tonne from $120-140 per tonne a week prior.
Fastmarkets’ nickel, min 99.8%, full plate premium, in-whs Shanghai also slipped to $110-140 per tonne on Tuesday, down by $10 per tonne at the low end compared with a week earlier.

Nickel futures prices on the SHFE staged strong performance in recent days, with SHFE July...


Orla O'Sullivan

Amy Hinton

Sally Zhang

July 08, 2020

23:51 GMT

London, New York, Shanghai