Nickel Prices to Move Rangebound with Occasional Drops on Feb 21

SHANGHAI, Feb 21 (SMM) - SHFE nickel kept falling amid the expected sufficient nickel supply. Upstream enterprises were much more willing to ship, dragging down spot premiums yesterday. On February 20, the average price of SMM Ni 8-12% high-grade NPI was 1,350 yuan/mtu (ex-factory, tax included), flat from the previous trading day. Some stainless steel mills have set the NPI prices for March in the form of fixed orders. The sellers' quotes remained almost unchanged, but the purchase prices offered by stainless steel mills fell slightly. On the demand side, according to SMM research, the news that stainless steel mills controlled the allocation of the goods last week boosted market confidence, and the #304 stainless steel trading was acceptable. However, processing plants purchased cautiously amid poor orders. Most alloy companies have basically completed restocking, hence these enterprises made fewer inquiries. To sum up, the pure nickel sector faces weak supply and demand. Nickel prices will move rangebound with occasional drops.