Market of nickel oxide ore sees no good sign

The market of nickel oxide ore has been slow for a long time in China, pressed down by the low demand from ferronickel plants. However, the market does not improve when entering September. Seeing from the soft market, market participants are very pessimistic about the future market and believe that it needs a long time for the market to improve greatly.
A Jiangsu-based trader still holds 30,000t of nickel oxide ore 1.43% with the moisture of 30% imported last year and insists on the offer at RMB300/t (USD44/t) ex port. However, most buyers cannot accept the above price and prefer to buy at RMB260-270/t (USD38-39/t). They would rather hold the stocks than sell at the above price, as they have suffered greater losses.
"The inquiries we received have increased compared with that in August, but it is difficult to conclude deals at our offer," said the source, adding that they are busy finding buyers and prefer to empty the stocks, as they are very pessimistic about the future market.
A Fujian-based trader revealed that they sold 30,000t of nickel oxide ore 1.8% with the moisture of 30% at RMB500/t (USD73/t) half a month ago and still holds 30,000t of the material on hand. The source confirmed that some traders have reduced the offer below to RMB500/t, so they are facing great pressure if insisting on the current offer. However, they are reluctant to sell the material in the face of suffering great losses.
"We will not consider importing nickel oxide ore, owing to the dull market," said the source, adding that they will continue to watch the market and hope that the market will not follow suit with nickel price dropping further. Otherwise, they will suffer more.