China, US nickel premiums remain flat amid quiet market; European briquette premium fall

Nickel briquette premiums in the European market trended downward in the week to Tuesday September 11, while premiums elsewhere in the global market remained flat

European nickel price update

European nickel briquette premiums narrowed down on Tuesday, while full-plate cathodes and 4×4 cathodes remained flat as nickel falls below $16,000 per tonne.

Fastmarkets assessed the nickel uncut cathode premium, in-whs Rotterdam at $150-300 per tonne on Tuesday, unchanged from the week earlier.

Fastmarkets assessed the nickel 4×4 cathode premium, in-whs Rotterdam at $330-450 per tonne on Tuesday, also unchanged from a week earlier.

The European 4×4 market saw yet another quiet week, with no buying or selling interest reported.

“There is so much nickel available I don’t see why anybody in Europe would pay a premium to get 4×4,” a trader said. 

Fastmarkets assessed the nickel briquette premium, in-whs Rotterdam at $200-350 per tonne on Tuesday, narrowing downward from $200-400 per tonne a week earlier.

The briquettes market narrowed downward as market participants factored in lower freight costs, sources said.

“Shipping costs are coming down and that means it is cheaper to replace units,” a second trader said.

The London Metal Exchange three-month nickel price was $15,741 per tonne on September 10, down from $16,462 per tonne on September 3, marking the first time since February that nickel closed below $16,000 per tonne.

China nickel market

Premiums of nickel full plates in China remained stable in the week to Tuesday, following a decline in the bonded unit premium in the previous week.

The Chinese market was muted as import terms worsened amid weak demand, according to sources.

Fastmarkets’ calculation of nickel import arbitrage was at a $(1,071.58) per tonne on Tuesday, compared with $(1,045.69) per tonne on September 3.

“Demand from the electroplating sector for prime brand nickel cathodes was sluggish. But sellers have yet to revise down their offer levels so the spot cif market still has some support,” a nickel trader based in eastern China said.

Fastmarkets’ weekly assessment of the nickel min 99.8% full plate premium, cif Shanghai was $150-250 per tonne on Tuesday, unchanged since August 6.

The bonded nickel market was also muted, leaving the premium unchanged, sources told Fastmarkets.

Fastmarkets’ weekly assessment of the nickel min 99.8% full plate premium, in-whs Shanghai was $0-100 per tonne on Tuesday, unchanged from a week earlier.

United States nickel prices

Fastmarkets’ assessment for the nickel 4×4 cathode premium, delivered Midwest US was 45-55 cents per lb on Tuesday, unchanged since February 20.

Inputs were collected between 45-60 cents per lb.

Fastmarkets’ assessment for the nickel briquette premium, delivered Midwest US was 40-45 cents per lb on Tuesday, unchanged since February 27.

Inputs were collected between 40-50 cents per lb with a deal reported at 50 cents per lb.

Most market participants agreed with the current ranges for both cathode and briquette, with multiple sources noting that the market has been very slow for the pervious few weeks, sources told Fastmarkets.

“There has been no spot business for the last two weeks. It’s very slow,” a trader said.

Meanwhile, the outlook for nickel in North America remained bullish, with battery capacity installed in electric passenger vehicles expected to grow sixfold between 2020 and 2035, 

Fastmarkets’ International Critical Minerals and Metals Summit took place last week on September 5 and 6. The outlook for nickel in North America remained bullish, with battery capacity installed in electric passenger vehicles expected to grow sixfold between 2020 and 2035, Fastmarkets heard at the International Critical Minerals and Metals Summit heard on September 6.

Short-term nickel price forecasts have been revised lower, but we still see room for a seasonal rebound in the fourth quarter and into early 2025,” Fastmarkets analyst Andrew Cole said.

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