Nickel Prices Gain Support from Fundamentals Despite the Bearish Macro Factors

SHANGHAI, Apr 10 (SMM) - In terms of fundamentals, spot nickel premiums hovered at highs after the extreme price move in 2022, which motivated many companies to produce electrowinning nickel with MHP or nickel sulphate. However, nickel prices began to fall amid the expected high electrowinning nickel output in 2023, and the profit margins of electrowinning nickel producers also declined. SMM research showed that many electrowinning nickel companies postponed the production schedules during the year. In March, pure nickel consumption by the nickel-based alloy sector rose 6.33% month-on-month since the nickel prices were on a downward trend amid the resonance of bearish macro and fundamental factors.  The alloy demand did not boom as expected in March, but the downstream companies are generally optimistic about the demand in April, which may improve the profit margins of alloy enterprises. In conclusion, pure nickel supply remains tight, while the demand has picked up slightly, which will support the nickel prices to a certain extent.