SMM News, August 2 - Recently, the nickel ore market has shown complex volatility, with market fluctuations intensifying. In the short term, the driving force for a slight increase in laterite nickel ore prices remains strong.
Domestic market: Affected by a large flow of Philippine nickel ore to the Indonesian market, the supply of medium-grade nickel ore in the domestic market is relatively tight. This situation has led traders to continuously raise prices to create momentum. The current domestic market quotations for medium-grade laterite nickel ore still impose high production cost pressures on domestic downstream smelters. Together with the approaching monthly negotiation period in the Philippines, market quotations remain exploratory, and the price game between upstream and downstream persists. However, it is expected that downstream smelters' intention to restock will strengthen considering the approaching rainy season in the Philippines.
Indonesian market: Strong demand in the Indonesian market has attracted a large influx of Philippine nickel ore, which has steadily increased the premium level of Indonesian nickel ore. Some smelters have also raised their psychological expectations for purchasing nickel ore in August. From the current market negotiation status, the premium has a trend of continuing to rise. The commissioning of new projects in Indonesia has further exacerbated the tight supply situation, making the intention to restock more evident.
Additionally, affected by fluctuations in the LME nickel market, the monthly benchmark price of domestic trade laterite nickel ore in Indonesia has decreased, but the premium part has shown an upward trend, indicating buyers' expectations for market growth. In the short term, nickel ore prices are expected to hover around the current level, and market quotations may continue to strengthen, especially against the backdrop of rising domestic NPI prices. According to the latest data, national port nickel ore inventory shows an increase, but the market's demand for restocking still exists. Overall, the nickel ore price trend in August will be influenced by multiple factors. In the short term, market prices may see a slight increase, particularly with the progress of a new round of negotiations in the Philippines, further affecting market sentiment and nickel ore price volatility.
Overall, the nickel ore market in August will mainly be stable with a slight upward trend. Traders and buyers should pay attention to market dynamics and make corresponding adjustments and strategies. Facing the complex international and domestic market environment, companies need to ensure supply while reasonably controlling procurement costs to cope with various potential market changes.
