Nickel Prices Grow last Week on Supply Tightness and Improvement in Demand

Published: Apr 17, 2023 16:05
Source: SMM
The US non-farm data released last Friday exceeded expectations, and the market trades on economic recession seemed to be reversed.

SHANGHAI, Apr 17 (SMM) - The US non-farm data released last Friday exceeded expectations, and the market trades on economic recession seemed to be reversed. On the evening of April 7, the US Department of Labour announced that the seasonally adjusted non-farm payroll in March was 236,000, lower than the expected 239,000, but the unemployment rate in March was 3.5%, lower than the expected 3.6% and the previous reading of 3.6%. The data show that the US labour market is still strong. The market highly expects the US Fed to raise the rate by 25 basis points in May, which will exert pressure on the nonferrous metals prices in the short term. At the same time, the market also bets that the Fed will slow down or pause rate hikes in the future, which will have a positive effect on the nonferrous metals prices.

Near the delivery of the SHFE 2304 nickel, most traders included the NORNICKEL nickel in the sources for warrant delivery, hence the premiums stood firm. The suppliers of Jinchuan nickel were much more willing to ship, dragging down its spot quotes. The NPI plants generally held their prices firm. Recently, the transactions between traders and NPI plants have increased. Market players generally remained bullish. On the demand side, according to SMM research, the spot stainless steel transactions became sluggish last Thursday, and the premiums dropped slightly amid falling futures prices last Friday. SMM expects the spot stainless steel prices to be stable with some drops in the short term. The supply tightness and the improvement in demand beefed up nickel prices to a certain extent. However, the rate hikes have led to a slight economic recession, and the electrowinning nickel output is expected to increase, which may weigh on nickel prices.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
[SMM Nickel Market Flash] Indonesia-Philippines Nickel Link Targets Ore Supply and Downstream Integration
12 hours ago
[SMM Nickel Market Flash] Indonesia-Philippines Nickel Link Targets Ore Supply and Downstream Integration
Read More
[SMM Nickel Market Flash] Indonesia-Philippines Nickel Link Targets Ore Supply and Downstream Integration
[SMM Nickel Market Flash] Indonesia-Philippines Nickel Link Targets Ore Supply and Downstream Integration
One of the core objectives of the Indonesia-Philippines nickel corridor is to better connect Philippine ore resources with Indonesia’s downstream processing capacity. The report said the arrangement could strengthen feedstock security for Indonesia’s expanding HPAL and refining system, while giving the Philippines a faster route to benefit from higher-value regional exports through Indonesia’s processing hub. The initiative is also seen as a signal that Southeast Asia is seeking stronger bargaining power in the global nickel and EV battery supply chain.
12 hours ago
[SMM Nickel Market Flash] Indonesia and the Philippines Launch Nickel Corridor Initiative
12 hours ago
[SMM Nickel Market Flash] Indonesia and the Philippines Launch Nickel Corridor Initiative
Read More
[SMM Nickel Market Flash] Indonesia and the Philippines Launch Nickel Corridor Initiative
[SMM Nickel Market Flash] Indonesia and the Philippines Launch Nickel Corridor Initiative
Indonesia and the Philippines have formally launched a “nickel corridor” initiative during a high-level business roundtable in Cebu. The report said the cooperation is being advanced by APNI and PNIA and will focus on data sharing, cross-border investment, and ESG alignment, with the aim of moving both countries beyond raw material exports toward a more coordinated regional nickel supply chain.
12 hours ago
[SMM Nickel Market Flash] Western Mines Intersects Higher-Grade Nickel Zones at Mulga Tank
12 hours ago
[SMM Nickel Market Flash] Western Mines Intersects Higher-Grade Nickel Zones at Mulga Tank
Read More
[SMM Nickel Market Flash] Western Mines Intersects Higher-Grade Nickel Zones at Mulga Tank
[SMM Nickel Market Flash] Western Mines Intersects Higher-Grade Nickel Zones at Mulga Tank
Western Mines Group said hole MTD031 at the Mulga Tank Project also returned several higher-grade nickel intersections, including 6 m at 1.02% nickel from 259 m and 8 m at 0.81% nickel from 298 m. These intervals were also associated with elevated cobalt, copper, and platinum-palladium values. The results suggest deeper enriched zones may remain open and could support further delineation of higher-grade mineralisation.
12 hours ago
Nickel Prices Grow last Week on Supply Tightness and Improvement in Demand - Shanghai Metals Market (SMM)