SHANGHAI, Jun. 15 (SMM) – It is now middle of June, and nickel ore market shows no improvement over the past two weeks of the month. What’s the nickel price outlook for the rest of June? Will the market go further in the downward track or have the chance of rallying?
The answer will disappoint you all. So far, no positive sign is available in nickel market fundamentals.
On the raw material front, it is now a peak sales period of nickel ore in the Philippines, meaning that ore shipments from the country will be rising, which will weigh down nickel ore market. And falling prices of raw materials may provide room for Chinese nickel smelters, which are now running at low utilization rates, to increase production, negative to nickel prices.
In the downstream market, high supply and poor demand are expected to leave stainless steel prices in the downward track in mid and late June, despite that price declines may be small.
Considering all, nickel market will remain in downward territory for the rest of June, with LME nickel to trade at $8,700-9,300 per tonne.