**Chinese production of NPI was up by 50.9% year on year in July 2019 to a record 536,000 tonne**s
LME data week from September 16 to September 20
Live Warrants started the week at 83.178 and ended at 83.112, Cancelled Warrants started the week at 83.502 and ended at 71.454.
Opening Stocks are now at 154.566 - 12.114
On September 20, according to SMM research, the total amount of nickel stocks in Shanghai, including the previous warehouse receipt inventory, increased by 1085 tons to 83000 tons, an increase of 1.3 per cent over the previous week. The specific changes are as follows: domestic stocks increased by 585 tons to 53000 tons over the previous week, including 11000 tons of nickel beans and 42000 tons of nickel plates. Stocks of refined nickel in the Shanghai bonded zone over the same period were about 30, 000 tonnes, up 500 tonnes from last week, including 7800 tonnes of nickel beans, flat from the previous week.”
Source SMM News Metal
But they still need:-
“Giga has cited a long-term incentive price of US$12/lb or $26,500 per tonne for nickel to get larger projects built, with nickel currently worth about $8/lb or $17,660/t.”
There’s a lot of inventory being moved around at the moment. It’s difficult to know where its all really coming from or where its actually going, up one minute down the next. Its not fundamentals driving these changes in inventory that’s for sure.