SMM Nickel Market Daily Review (2015-3-16)

Published: Mar 17, 2015 11:23

Save

SMM #1 refined nickel prices were RMB 104,200-105,000/mt on Monday.

SHANGHAI, Mar. 17 (SMM) – SMM #1 refined nickel prices were RMB 104,200-105,000/mt on Monday. Spot prices increased and trading turned more brisk Monday morning, with most deals done at RMB 104,300-105,000/mt. In the afternoon, prices held steady. Most transactions were made between traders, and downstream buyers only bought in small amounts. Mainstream traded prices were RMB 104,500-105,100/mt in the afternoon.

12 of the 30 market players surveyed by SMM are bullish about this week’s nickel prices, expecting LME nickel to trade at USD 14,150-14,400/mt, noting that NPI producers in Shandong’s Linyi have not yet resumed production from the environmental protection crackdowns and the declining supply will support prices. Besides, inspections will also be conducted in Inner Mongolia, presaging further cut in production.

10 respondents see nickel prices to consolidate at USD 14,000-14,150/mt. These players said that nickel supply still exceeds demand despite closures in Shandong. Most stainless steel mills have reportedly built sufficient NPI stocks, meaning downstream demand is unlikely to show significant improvement. Meanwhile, high LME nickel inventories will also prevent prices from rising sharply.

8 of the surveyed expect LME nickel to fall to USD 13,800-14,000/mt, arguing that the plunge in crude oil prices will exert a drag on nickel prices. Although NPI producers in Linyi remained closed, these players believe the shutdowns will not last long and the brief decline in NPI production may have limited impact on prices. In addition, weakening nickel ore prices will also weigh down nickel prices.

China 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

8 hours ago

Fed Governor Milan Pushes for Over 100 Basis Points Cut, Contradicts Barkin on Caution

Federal Reserve Governor Milan pointed out that it is necessary for the US Fed to cut interest rates by more than 100 basis points this year. At the same time, he is very much looking forward to the performance of Kevin Warsh as Fed Chairman. However, Richmond Fed President Barkin emphasized that monetary policy must remain cautious until inflation fully pulls back to the target level, thereby ensuring the stability of the labour market.

8 hours ago

Democratic Senators Demand Delay in Fed Nomination Amid Criminal Investigation

All 11 Democratic members of the US Senate Banking Committee jointly sent a letter to the committee's chairman, Tim Scott, requesting that all nomination processes for the prospective Fed Chairman, Kevin Warsh, be postponed until the criminal investigation into current Fed Chairman Powell and other board members is concluded. However, Scott stated that Warsh's confirmation was a done deal.

8 hours ago

Fed to Keep Large Banks' Capital Levels Unchanged, Postpones Stress Test Reforms Until 2027

The US Fed has announced that it will maintain the capital levels of large banks unchanged during the upcoming stress test cycle (corresponding to the 2026 cycle). At the same time, the US Fed is planning multidimensional reforms to this annual test, aiming to enhance its transparency. The US Fed's Vice Chair for Supervision, Bowman, revealed that adjustments to the stress capital buffer requirements for large banks will be postponed until 2027. This move is intended to provide the US Fed with sufficient time to evaluate potential flaws that may be exposed in its testing models when assessing banks' financial conditions under simulated economic downturn scenarios.

8 hours ago