SMM China Metals Market Shanghai nickel rallies on renewed...

SMM China Metals Market
Shanghai nickel rallies on renewed concerns over Indonesia export ban

SHANGHAI, Aug 5 (SMM)Shanghai nickel prices jumped on Monday August 5, bolstered byrenewed concerns over Indonesia’s export ban on nickel ore.

The most active October contract on the Shanghai Futures Exchange hit a fresh 13month highof 119,360 yuan/mt this morning, above the highest level of 119,240 yuan/mt in the previousrally in early July . It finished the trading day 3.64% higher at 118,010 yuan/mt.

Concerns about Indonesia’s export ban was rekindled by market talk that the country’s Ministerof Energy and Mineral Resources (MEMR) has approved the ban on raw ore exports and thatdetails a bout the decision will be announced on Monday August 5.

This means that Indonesia, a major source of nickel ore, will likely advance its export ban fromthe previously scheduled 2022.
Some Chinese nickel ore traders told SMM that they did hear of the market talk, but Indonesianminers such as Antam and Sambas said that they have yet to receive any notices.

Growth in domestic nickel ore supply missed forecast while demand grew significantly, withdownstream plants stockpiling raw materials for the rainy seas on. Traders have reported limitedcargoes available. SMM expects tightened supply to keep nickel ore prices robust in August.

SMM data showed that nickel ore inventories across all Chinese ports expanded 80,000 wmtfrom a week ago to 13.49 million wmt as of Friday August 2. Stocks in metal content rose 700mt on the week to stand at 113,000 mt. Stocks across seven major Chinese ports grew 60,000wmt, and came in at 11.08 million wmt.

Cif prices of mediumand high grade nickel ore extended growth last wee k. A downstreamplant in the south purchased medium grade ore with 1.65% Ni at $43/wmt cif, up $1.3/wmton the week. Traded prices of high grade nickel ore with 1.8% Ni also grew $1.3/wmt on theweek, to stand at $54 55.5/wmt cif