The price spread between Jinchuan and Norilsk nickel further widened in the Shanghai spot market on Wednesday July 18 due to tighter supply of Jinchuan materials and growing inflows of the latter, we?believe.
Norilsk nickel traded at a premium of about 150 yuan/mt over the Wuxi Stainless Steel Exchange 1808 contract while Jinchuan was trading at a premium of about 1,050 yuan/mt. This compared with a 650-yuan/mt spread in the previous day.
As an import arbitrage window opened last night, some Norilsk materials flowed into the domestic market. Supply of Jinchuan nickel got tighter as sellers held back and kept offers firm.
Trading of Norilsk nickel was more brisk than that of Jinchuan materials. Steel mills were keen to make purchases.
Prices of the Wuxi 1808 inched up in the morning. Jinchuan offered its nickel plate at 110,000 yuan/mt. Most transactions were heard at 108,900-110,000 yuan/mt.