London 22/09/2015 - Cancelled nickel warrants in the LME warehouse system jumped this morning, principally in Johor.
Total cancellations rose a net 21,846 tonnes to 182,082 tonnes, with 21,822 tonnes of metal freshly cancelled in Johor, lifting the total there to 93,612 tonnes.
Johor is the largest holder of nickel at 308,084 tonnes, of which 113,472 tonnes are on warrant. The two main holders of metal at this location are Glencore-owned Pacorini and Steinweg.
Global stocks at 452,694 tonnes were down 1,628 tonnes. With 270,612 tonnes of on-warrant material, available stocks are now the lowest since September 29, 2014.
Still, prices remain weak - the metal recently traded at $9,755 per tonne, down $100 on Monday's close - amid unsettled sentiment. China's imports of refined nickel dropped to their lowest in four months in August due to weaker stainless steel demand.
"Prices are unfazed by the [inventory] moves today and are still negative. It is interesting to see in a quiet market, but unlikely to be real demand and the cynic in me says it is just another spate of warehouse games," a trader said.
(Editing by Mark Shaw)