The most-traded May nickel contract on the SHFE stood at 95,910 yuan ($14,494) per tonne as of 10:33am Shanghai time, up by 900 yuan from the previous session’s close.
Nickel prices on the SHFE have risen this morning, finding support from supply-side factors.
“As the International Nickel Study Group (INSG) reported on Monday, the global nickel market showed a supply deficit of 54,300 tonnes in the first three quarters of the year. This was somewhat higher than in the same period last year. For the year as a whole, the INSG is envisaging a deficit of nearly 100,000 tonnes, which implies a huge shortfall in supply in the fourth quarter,” Commerzbank said on Wednesday.
Further support for nickel prices came from reports suggesting Philippine President Rodrigo Duterte is keeping a ban on new open-cast mines in place, according to Sucden Financial Research.
“There was a lot of hype during LME Week about the bullish impact of electric vehicles (EV) and in recent weeks it seems to have dawned on the market that although EVs will boost metal consumption considerably, it is too early to price this in,” Metal Bulletin analyst William Adams said.
“That said, the underlying current fundamentals are already firm and look set to tighten further, so we are not surprised prices have found support. Overall, we expect range-bound markets as buyers and sellers take advantage of the top and bottom of the ranges,” he added. Copper corrects, but fundamentals remain strong
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