SHFE 1801 Nickel Prices to Move above 5-day Moving Average (2017-8-25)

[SMM Nickel Flash] On September 11, SMM learned that the NPI market has been under pressure from multiple factors, including a recovery in loose supply, end-use consumption under pressure, continuously accumulating inventory, and weak macro sentiment, leading to a sustained price collapse. Recently, multiple fixed-price deals have been concluded in the market, with transaction prices ranging from 1,070 to 1,090 yuan/nickel unit, on a delivered, tax-inclusive basis, with a nickel content of 11% and trading volumes of 20,000-30,000 mt.

The European stainless steel scrap market weakened further in July and August as domestic mill buying interest remained limited, weighing on prices. Exports to India, where steady demand and competitive pricing were maintained, prevented a sharper decline in European stainless scrap prices. A cautious recovery is expected at the start of September as European producers restart operations, though well-stocked inventories mean there is no urgent need for restocking, pointing to a gradual pace of market improvement.