Traders are moving nickel stockpiles from China to other Asian warehouses to capture hefty profits by delivering to the London Metal Exchange.
At least 15,000 tons of refined nickel left bonded warehouses in China since September, according to traders and logistic managers with knowledge of the matter. The inventory is on its way to LME storage facilities in Taiwan, Malaysia and Singapore, said the people, who asked not to be identified as the information is private.
The metal that’s set to reach LME warehouses is another example of the convulsions within the nickel market after Indonesia promised to ban raw-ore exports next year, unleashing a panic over possible shortages. In the past month, about half of all the nickel in LME warehouses has been withdrawn and spot contracts have traded at the biggest premium to futures in 12 years, in a condition known as backwardation.