Strict Regulations from Forestry Task Force, Indonesia's Nickel Ore Price Slightly Declined Weak Purchasing Behavior at High Prices, Upward Pressure on NPI Prices Becomes Evident

US CPI data and jobless claims numbers both reinforced market expectations for a US Fed interest rate cut in September. Today, the nonferrous metals sector saw a broad rally, with nickel prices among the top gainers. Fundamentally, spot market transactions in September recovered somewhat compared to August but fell short of the previous "Golden September" expectations. LME nickel inventory continued to climb, with a buildup of 7,842 mt in the recent week, reaching 223,152 mt as of September 12, the highest since August 2021. High inventory and supply pressures limited the gains.

Tight Supply-Demand Pattern for Nickel Intermediate Products Drives Upward Price Trend

Since mid-July, SMM battery-grade nickel sulphate prices have shown an upward trend, with the average price rising from 27,220 yuan/mt on July 15 to 27,800 yuan/mt on September 1. Prices are expected to fluctuate upward overall in Q3. Would Refined Nickel Alter the Tight Supply-Demand Balance of Nickel Sulphate?

Nickel prices rose first and then fell this week. As of September 5, the most-traded SHFE nickel 2510 contract closed at 121,310 yuan/mt, down 0.65% WoW. LME nickel prices also weakened, with the latest quote at $15,270/mt, down $130 (0.84%) WoW.

Expected Ore Supply Increase, Better Rainy Season. Cost Support and Demand Recovery Drive High-Nickel Pig Iron Prices Higher