By Mai Nguyen
Aug 27 (Reuters) – Nickel prices hit their highest since November on Thursday, fueled by solid demand from the stainless steel sector and concerns over supply from top producer Indonesia.
Three-month nickel on the London Metal Exchange rose as much as 0.6% to $15,245 a tonne, its highest since Nov.
14, before easing to $15,200 a tonne, up 0.2% at 0703 GMT.
The most-traded November nickel contract on the Shanghai Futures Exchange (ShFE) hit 120,750 yuan ($17,541.44), a high unseen since Nov. 15. It ended up 0.7% at 119,430 yuan a tonne.
“Stainless steel production in August remains high,” said analyst Ellie Wang of metals consultant CRU Group, adding that exports of home appliances from China had also improved.
“The electric vehicle sector also resumed (momentum) since June.”
ShFE’s most-traded futures contract of stainless steel hit its highest since Oct. 29 of 15,205 yuan a tonne.
Construction and home appliances are major end-users of stainless steel, which accounts for about 70% of global nickel demand.
Also helping nickel prices was concern over supplies from Indonesia, the world’s top producer of the ore.
Some areas in a major smelting facility, the PT Indonesia Weda Bay Industrial Park, were flooded on Wednesday, forcing the company to halt operations.
* LME cash nickel was trading at a discount of $35 a tonne to the three-month contract <CMNI0-3>, the tightest discount since Nov.
5, indicating tightening nearby supplies.
* However, nickel inventories in LME-approved warehouses <MNISTX-TOTAL> hovered around their highest since August 2018, while ShFE warehouses <SNI-TOTAL-W> hit their highest since Feb. 28, capping further rally in prices.
* LME copper eased 0.3% to $6,573.50 a tonne, while ShFE copper advanced 0.4% to 51,490 yuan a tonne.
* China extended until Dec.
31 the deadline for companies to apply to become certified suppliers or importers of high-grade copper and aluminium scrap.
* For the top stories in metals and other news, click or ($1 = 6.8837 yuan) (Reporting by Mai Nguyen; Editing by Shailesh Kuber and Anil D’Silva)
If you have any inquiries concerning in which and how to use stainless steel profile, you can make contact with us at our web page.
To speak with us over the phone, please call us on the landline: +44 (0)1434 632010 or the mobile: +44 (0)7588 774469