The active rolling nickel cathode SHFE
price closed at 167,000 yuan ($26,238) per tonne on Friday, up by 3,800 yuan per tonne from a closing price of 163,200 yuan per tonne on Thursday. This was the highest since the contract was launched in 2015.
Many market participants pointed out that a short squeeze was sending nickel prices to an all-time high because of the low availability of deliverable full plate nickel.
Short squeezing reflected a rush to cover short positions on the cash month, either by buying back the position or delivering physical metal onto the exchange.
“The arbitrage window was previously closed for few months so traders’ import interest was really low, leading to a low supply...