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The nickel market has caught fire. Shanghai nickel hit record high in 10 years due to supply woes.Sep 10, 2019 12:20
Shanghai nickel prices hit a record high on Friday, as a waste spill at a nickel plant in Papua New Guinea sparked fear of some supply shortage.
The premium for cash nickel over the three-month contract on the London Metal Exchange (LME) MNI0-3 has spiked to a 10-year high of $99 a tonne, signalling tight nearby supply.
Shanghai Futures Exchange’s (ShFE) most-traded nickel contract jumped as much as 2.6% to a record 130,100 yuan ($18,342.54) a tonne, while London nickel rose 0.2%, after hitting a three-week high in the previous session.
Metallurgical Corp of China’s Ramu battery nickel processing plant is facing compensation claims and possibly closure after it spilled mine waste into a Papua New Guinea’s bay, the head of the country’s minerals authority said.
“The (Ramu) operation produces approximately 35,000 tonnes of nickel, equivalent to 23% of the metal held in London Metal Exchange inventories,” said ANZ in a note.
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