Reuters reported that nickel premiums in Europe are expected to recover in early 2012 as some producers see Chinese easing monetary policy to help to spur demand for raw material.

China’s Central Bank cut the reserve requirements for commercial lenders to shore up the economy in November.

It’s known that the spot nickel is expected to be supported by some buying from Chinese stainless steel mills since the country’s nickel pig iron makers struggle to compete in the refined metal’s recent dips.

At present, the premiums for cut NI-RDM-CT and briquette NI-RDM-BRQ nickel in Rotterdam, paid over the LME cash prices were both quoted at US$250~US$300/ton, remained unchanged from a week earlier.

Besides, the premiums for full plate NI-RDM-FP was slightly higher at US$100~US$125/ton.

Meanwhile, the nickel prices in three month delivery at LME hit a 23 month low of US$16,550/ton in late November. It has been declined by almost 26% year to date.