[Ferro-alloys.com]This week the LME nickel price continued the downturn trend, which closed at USD15520/mt, decreasing by USD707/mt compared with last week. The nickel stock increased by 198 tons to 406,722 tons. Entering Dec., the nickel stock maintained the high level of more than 406thousand tons. On Dec.19th, the Jinchuan nickel was quoted at RMB109000-109400/mt, falling by RMB5200/mt than that of last week.

Due to the tight supply, the low ferronickel price further rose by RMB50 to RMB2600-2650/mt (ex-works price with tax). Up to Dec.19th, the low FeNi had already increased for one month with accumulative rising rate of RMB250/mt.

The continuous weakness of LME Ni once again aroused the pessimistic mood of the participant ants, especially the traders and the steel mills. For FeNi manufactures, most of them still chose to hold the stock for the high nickel ores cost. In recent week the ex-woks price of medium and high FeNi price was cut down by RMB20/Ni with few transactions. Now FeNi with (Ni 4-6%) was quoted at RMB1130-1150/Ni, ferronickel (Ni 6-8%) at RMB1120-1140/Ni and ferronickel (Ni 10-15%) at RMB1120-1150/Ni. Despite of the high cost, it was expected that the FeNi price would continue to go down if the LME Ni condition did not turn well, while the drop rate would not be large.

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• [Editor:Juan]