SMM

SHANGHAI, Jan 3 (SMM) - In December, nickel ore trading was slack amid the weak supply and demand. Last Friday, the average price of Ni 1.5% ore stood at $71.5/wmt on a CIF basis, flat from a week earlier.  Spot nickel ore supply remained tight as the shipments of nickel ore from the Philippines are limited during the rainy season. Moreover, the downstream demand was poor. NPI plants could not accept high nickel ore prices and their purchase prices were close to the break-even points of ore traders, which failed to boost the imports of laterite nickel ore. As a result, the nickel ore supply was scarce. In terms of demand, the NPI market was in a stalemate, and the prices remained rangebound. NPI output stood low, limiting the nickel ore demand. SMM presumes that nickel ore trading will be sluggish in the near future, with the short-term Ni 1.5% ore prices fluctuating between $68-72/wmt.