Nickel import demand in China is “surging” because of a shortage of nickel pig iron, Macquarie Group Ltd. said, citing unidentified sources.

Nickel pig iron, usually a cheaper alternative to refined nickel, is now more expensive, Macquarie said in a report dated Sept. 12. A trading company in China may be building nickel stockpiles to start a nickel exchange-traded fund, Macquarie said, citing reports without identifying the authors. “These factors make us more bullish about the nickel price outlook in the short run, even though we maintain a forecast of a large 2012 surplus,” Macquarie said. –  Bloomberg