GLOBAL NICKEL WRAP: Premiums find fundamental support in US, Europe

Bullish supply-side sentiment supported nickel premiums in the United States and Europe in the week to Tuesday April 20, while premiums in Asia were flat with a lack of arbitrage opportunities smothering liquidity.

  • US briquette and 4x4 premiums rose following reports of reduced production
  • European briquette premium edges up in more active market
  • Premiums in Asia flat with closed arbitrage
US premiums up on supply issues, sentiment
Nickel premiums in the US moved up on a confluence of factors, including improved sentiment and demand pitted against logistical and other supply disruptions.
Fastmarkets assessed the nickel 4x4 cathode premium, delivered Midwest US at 28-32 cents per lb on April 20, up from 20-28 cents per lb on April 13, a 25% weekly increase and the premium’s first move in nine weeks.
Meanwhile, the more-traded nickel briquette premium, delivered Midwest US rose to 15-18 cents per lb on Tuesday from 13-16 cents per lb on April 13.

The 14% increase, or two cents per lb on either end, came amid further tightening domestic briquette supply, amid high global demand for briquettes in...

Published

Justin Yang

Orla O'Sullivan

Yingchi Yang

April 21, 2021

11:31 GMT

New York, London, Shanghai