MARKET TALK: LME Nickel Under Pressure; China Substitution

LME nickel faces downward pressure on reports from stainless steel producers such as China's Jinchuan Group that domestic buyers cutting back on refined nickel imports, says Investec; consumers increasingly seeking cheaper imports such as laterite ore to produce nickel pig iron. Demand for refined nickel viewed as falling as stainless steel mills including Shanxi Taigang Stainless Steel, Baosteel and POSCO's plant in China increase production of low-nickel products. "This may slow down growth of refined nickel consumption in one of the world's biggest consumers of the metal." LME 3-month nickel trades at $46,399/ton, up $99 vs yesterday's PM kerb.