The firmly-closed arbitrage window between the London Metal Exchange and Shanghai Futures Exchange manifested in lower China nickel premiums in the week to Tuesday July 28, with a lack of profit-making pushing deals lower, Fastmarkets heard.
Closed arb window pushes China premiums lowerUS spot market flat amid muted return to market from stainless steel millsEuropean market remains subdued amid summer holiday seasonLong-lasting closed arb weighs on China premiums
The Shanghai nickel premiums moved lower in the week to Tuesday July 28 with the long-lasting closure of the arbitrage window between London and Shanghai pressuring down the market, Fastmarkets learned.
Fastmarkets assessed the
nickel, min 99.8%, full plate premium, cif Shanghai at $100-130 per tonne on Tuesday, down by $10 per tonne or 8% from $110-140 per tonne a week prior.
Fastmarkets' assessment of the
nickel, min 99.8%, full plate premium, in-whs Shanghai also fell in line with the cif premium to $100-130 per tonne the same day.
There was no import interest amid the sustained arbitrage loss, though offers were lowered significantly, sources told Fastmarkets.
"I heard offers at around $110...