SHANGHAI, January 8 (SMM) – Nickel prices continued to decline, reaching 123,540 yuan/mt on last Friday, with a weekly drop of 2.1%. But nickel sulphate prices remained stable last week. The main reason is the weak trading in the nickel salt market, with both reduced supply and subdued demand in the upstream and downstream sectors. NPI prices saw a slight rebound last week, primarily influenced by a resurgence in downstream procurement demand. Recently, there was a noticeable increase in the intended selling prices of traders. Due to a significant decline in SHFE nickel prices last week, the price difference between pure nickel and NPI, as well as nickel sulphate, narrowed. On the macro front, on last Wednesday night, the Fed released minutes from their meeting. Fed officials think the risk of rising inflation has decreased somewhat. They hinted that expectations for a rate cut in 2024 might persist but didn't give any signal about when it might happen. The Fed switched from being dovish before and minutes reveal a hawkish stance now. Additionally, the Red Sea shipping incident remains unresolved. European shipping leaders announced price hikes and extended shutdowns. However, the Red Sea crisis did not have a significant impact on pure nickel at the moment. From a fundamental perspective, the spot market saw limited circulation of nickel plates, primarily led by Jinchuan nickel plates. Additionally, spot quotations increased. According to SMM research, domestic pure nickel inventories decreased last week, driven by downstream dip buying. There was a slight increase in orders for electroplating and alloys across different industries. This was reflected in the active trading of Jinchuan nickel plates in the spot market. Regarding stainless steel, inventory continued to decline, although at a slower rate, signaling a tempered optimism.
SMM Morning Comment For Nickel Market On January 8
- Jan 08, 2024, at 9:55 am
- SMM
Nickel prices continued to decline, reaching 123,540 yuan/mt on last Friday, with a weekly drop of 2.1%.
