Short supply of nickel products in the United States pushed the cut cathode premium up by more than that for briquette in the week to Tuesday August 17, while trade was still subdued in other regions, Fastmarkets has heard.
US 4x4 cut cathode premium up by 11.1%Continued arbitrage losses, Covid-19 problems worry Chinese tradersEuropean premiums flat in summer holiday lull.
Both US premiums rise in bullish conditions
The uptrend in nickel premiums continued in the US over the week, amid continued short supply, but with the cut cathode premium rising faster than the equivalent for briquette.
Delays in cathode cutting and renewed aerospace buying of that form contributed to the recent increase, sources said. And earlier bullish factors persisted, they added, including
Nornickel's absence from the cathode spot market, and high metal and freight costs.
Cut cathode has been the most-traded form in recent weeks, whereas the emphasis had been on briquette during June and July, when a strike at Vale's Sudbury mine in Canada limited the availability of rounded nickel forms, such as Vale's nickel 'rounds' and briquette.
The Sudbury...