Zhongwei shares issued an announcement last night that, in view of the company's continued optimism in the high nickel matte recovered from nickel laterite smelting, its wholly-owned subsidiary Zhongwei Hong Kong New Energy reached a supplementary agreement with RIGQUEZA to make additional investments in the joint venture PT.ZhongTsing New Energy. The two parties agreed to build a new laterite smelting project in Indonesia (Phase II) with an annual production capacity of 30,000 m of high nickel matte in metal content on top of Phase I project.

The current tightness of NPI, coupled with the upward trend in cost-end prices (mainly rising electricity prices) and the reduction in NPI output caused by power rationing, has made the problem of NPI shortage more difficult to solve.

LME nickel price is expected to average at $11,000-11,500 per tonne in 2018, SMM nickel analyst predicts at China Nonferrous Metals Industry Annual Meeting 2017 & SMM Nonferrous Metals Price Forecast.

Morgan Stanley estimates that supply deficit expansion in nickel market will support its price in the medium and long term.

SHFE nickel outperformed LME nickel last week, with bigger gains, and what’s outlook for nickel market this week?

SHFE 1709 nickel started at RMB 84,370/mt and closed at RMB 84,860/mt, up RMB 590/mt or 0.70%.

LME nickel will fluctuate at around USD 10,000/mt and SHFE 1705 nickel will fluctuate between RMB 81,900-83,500/mt.

SHFE 1705 nickel started at RMB 81,280/mt and closed at RMB 80,930/mt.

Inbound shipments of nickel ore to China were 1.09 million tonnes in February, up both on a monthly and yearly basis, according to China Customs.

LME nickel will find support at the 10-day moving average on Monday and SHFE 1705 nickel will move at RMB 90,500-91,900/mt.