Latest Update in the China Nickel Market

SHFE nonferrous metals increased broadly on Friday January 15. Aluminium added 0.92%, lead advanced 0.4%, nickel firmed 1.19% and tin rose 0.35%, while copper edged down 0.09% and zinc shed 1.67%.

Nickel ore inventories across all Chinese ports decreased 268,000 wmt from January 8 to 8.87 million wmt as of January 15, showed SMM data.

Inventories of refined nickel in the Shanghai bonded areas decreased 1,600 mt from a week ago and stood at 21,200 mt as of January 15, showed SMM data. 

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on January 15, 2021

Prices of 1.5% medium-grade nickel ore dropped to $65.5/wmt CIF in end-December, down 14.5% on the month. Mainstream transaction prices were not formed amid a few shipments from small-scale mines. With the disorderly market quotations of nickel ore, the mines’ acceptance for prices varied.

Shanghai base metals were mostly higher on Friday morning as investors reacted to the release of US President-elect Joe Biden's $1.9 trillion coronavirus rescue package. Meanwhile, their counterparts on the LME traded mixed.

The dollar drifted lower on Thursday in choppy trading, after Federal Reserve Chair Jerome Powell struck a dovish tone, saying the US central bank is not raising interest rates anytime soon and rejecting suggestions the Fed might start reducing its bond purchases in the near term.

SHFE nonferrous metals were mostly lower on Thursday January 14. Copper shed 0.17%, aluminium weakened 0.4%, zinc fell 1.85% and tin edged down 0.01%, while lead rose 1.81% and nickel gained 1.37%.