GLOBAL NICKEL WRAP: Premiums in China, US up; Europe outlook bullish

Premiums for nickel products in China and the United States rose in the week to Tuesday July 20 amid improved arbitrage terms and tight supply. The European premium was unchanged amid stable demand, but the outlook for the market is positive.

  • Improved arbitrage in China stimulates sentiment
  • Spot supply shortage pushes up US premium
  • European market flat, but outlook is bullish

Arbitrage opportunities push up Chinese nickel premium
China’s import premium for nickel full-plate cathode rose during the pricing session, with support coming mainly from an improved arbitrage window between London and Shanghai. The increase was small, however, due to buyers resisting the high prices sought by sellers.
Fastmarkets assessed the price of nickel, min 99.8%, full plate premium, cif Shanghai at $170-190 per tonne on Tuesday July 20, widening upward by $10 per tonne from $170-180 per tonne a week earlier.
Fastmarkets’ assessment of the nickel, min 99.8%, full plate premium, in-whs Shanghai was at $180-200 per tonne on the same day, up by $10 per tonne from $170-190 per tonne a week prior.

Improved import arbitrage terms continued to improve sentiment, with material offered at higher...


Justin Yang

Orla O'Sullivan

Sally Zhang

July 21, 2021

09:13 GMT

London, New York, Shanghai