LME Nickel Stocks





Jakarta flooding deterred NPI shipments

**Industry News 04:08:20PM Source:SMM **
SHANGHAI, Jan 2 (SMM) – Several vessels carrying nickel pig iron have been deterred from leaving Indonesia, as its capital city—Jakarta—is suffering the worst flooding in years, SMM learned from a market participant.

Heavy monsoon rains have lashed Jakarta and nearby cities since New Year’s Eve, and the weather agency expects the adverse weather to last until next week, according to a Bloomberg report on Wednesday.

A Reuters report on Thursday said that flash floods and landslides in the area have killed at least 21 people and forced tens of thousands of people to evacuate.

The Chinese NPI market has yet to react to the news, with market participants awaiting for further developments to assess the impact. The news might affect Chinese stainless steel mills’ attitude towards buying NPI.




What a badly written article. The writer keeps jumping around from Australian to US dollars, from contained nickel to ore reserves, from EVs bought in Australia each year to EVs bought worldwide each year to the cumulative total of EVs on the road worldwide. Its difficult to make sense of the article since the narrative is so confusing. I suppose the bottom line is nickel demand is dependent on EV adoption rates and EV adoption are expected to grow in the coming years.

TDT :sunglasses:




That doesn’t come as any great surprise. 2019 got off to a cracking start but it was all downhill from there on, especially after China reduced the available subsidies.

I strongly suspect H1 2020 in China is going to be weak.H2 should be a lot better. Europe is the place to keep an eye on in 2020.

TDT :sunglasses:




This was posted by RedLee over on iii. Worth listening to IMO.

TDT :sunglasses:





LME data week from December 30 to January 3 2020
Live Warrants started the week at 117.300 (81.9%) and ended 129.222 (82.63%) at Cancelled Warrants started the week at 25.890 (18.1%) and ended at 27.156 (17,37%)
Opening Stocks are now at 156.378, +13.188 this week







China nickel downstream activity improved in December

**Feature 12:15:03PM Source:SMM **
SHANGHAI, Jan 6 (SMM) – Manufacturing activities across nickel downstream sectors in China recovered from a month ago in December but remained in contraction for the ninth consecutive month, according to SMM survey.

SMM data showed that the purchasing managers’ index (PMI) for downstream nickel industries, including stainless steel, galvanising, alloy and battery, stood at 49.51 in December, up 3.76 from November. A reading below 50 indicates contraction.

For January, prospects for lingering weakness in the nickel downstream sectors sent the preliminary PMI to 47.06, down 2.45 from December, SMM assessed.

**Last month, the sub-index for production held up better than expected, standing 4.5 higher from a month earlier at 45.94, driven by ramped-up production of #300 stainless steel as orders improved at major producers after their output cuts in November. **

**Prices of nickel and stainless steel stabilised in December after previous losses, prompting traders and downstream buyers to resume purchasing. This lifted the sub-index for new orders in the stainless steel sector to 52.36, up 10.71 from the finalised reading in November. **

According to SMM data, the overall sub-index for new orders across downstream nickel sectors was also in expansion territory, up 7.95 on the month to 51.17, beating expectations of 41.04.

**The overall sub-index for raw materials inventories rebounded significantly from 48.25 in November, to 55.65 in December, as stainless steel producers stockpiled actively on falling feedstock prices. **

**Downstream galvanising plants also reported elevated raw materials stocks on the back of frontloading demand before the Chinese New Year holiday. Battery producers also stepped up purchasing feedstock for production during the holiday. **

**The overall sub-index for finished products stocks, however, flipped to a contraction in December, standing 2.32 lower from a month ago at 47.74. **

Cash-in inclination at year-end pushed stainless steel producers to clear inventories. This, coupled with a pickup in downstream procurement, accounted for the decline in finished products inventories.