[minutes of SMM nickel internal morning meeting] market sentiment overall pessimism nickel price rebound power is insufficient-Shanghai Metals Market

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[minutes of SMM nickel internal morning meeting] market sentiment overall pessimism nickel price rebound power is insufficient

Translation 10:47:54AM Nov 14, 2018 Source:Shanghai Nonferrous Metals Network

SMM 11月12日讯:

Us stocks rallied and closed lower, PetroAmerica tumbled 8 per cent, sterling soared and US bond yields fell. The Brexit draft agreed that the pound rose more than 1 per cent at a meeting of the British cabinet on Wednesday. China's financial data for October fell far short of expectations: new renminbi loans halved from a month earlier, and social and financial growth hit a two-year low.

Supply and demand details:

On the supply side, the supply of high nickel pig iron in China is likely to increase significantly in November. On the one hand, large steel mills in South China and East China will centrally ship back a large amount of nickel pig iron from Indonesia. From November to December, a steel plant in South China will return a total of 13.5 percent of nickel grade to about 70, 000 tons of NPI, equivalent to 9500 tons of metal. As a result, the amount of primary nickel is reduced. In addition to the above-mentioned integrated steel plants, according to incomplete statistics from SMM, more than 20, 000 tons of nickel pig iron are expected to return to China in November, from Indoferro, Xinhua Union, Xinxing casting pipe and Huadi and other Indonesian nickel pig iron plants. On the other hand, domestic production has recovered from environmental protection and power limits.According to SMM research, the national production of high nickel pig iron increased by 1.50% to 36900 nickel tons in November compared with the previous month. The water level of high nickel pig iron is higher than that of first grade nickel, which may be narrowed from the end of November to December.

On the demand side, SMM investigated the initial output of 3 series stainless steel in November 3 series 1.29 million tons, which is basically the same as that in October. The output of the third series in October was 1.27 million tons, an increase of 7.51% over the previous month. On the one hand, due to the maintenance of a steel plant in North China, the output recovered; on the other hand, due to the conversion of part of the carbon steel production capacity of a steel plant in South China to three series, the output increased, but the quantity was limited.

In terms of inventories, nickel stocks were 216600 tons, down 12 tons from yesterday, 14800 tons last Friday, up 1402 tons from the week before last, and 17600 tons more in East China on Friday than the week before last. The bonded area has a stock of 30500 tons, 1000 tons less than the week before last.

Price

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SMM #1 Nickel
Jun.25
100000.0
700.0
(0.70%)
#1 JinChuan Nickel
Jun.25
100625.0
775.0
(0.78%)
#1 Import Nickel
Jun.25
99425.0
750.0
(0.76%)
JinChuan B&C
Jun.25
1250.0
150.0
(13.64%)
Russian nickel premium
Jun.25
-25.0
-25.0
(0.00%)

[minutes of SMM nickel internal morning meeting] market sentiment overall pessimism nickel price rebound power is insufficient

Translation 10:47:54AM Nov 14, 2018 Source:Shanghai Nonferrous Metals Network

SMM 11月12日讯:

Us stocks rallied and closed lower, PetroAmerica tumbled 8 per cent, sterling soared and US bond yields fell. The Brexit draft agreed that the pound rose more than 1 per cent at a meeting of the British cabinet on Wednesday. China's financial data for October fell far short of expectations: new renminbi loans halved from a month earlier, and social and financial growth hit a two-year low.

Supply and demand details:

On the supply side, the supply of high nickel pig iron in China is likely to increase significantly in November. On the one hand, large steel mills in South China and East China will centrally ship back a large amount of nickel pig iron from Indonesia. From November to December, a steel plant in South China will return a total of 13.5 percent of nickel grade to about 70, 000 tons of NPI, equivalent to 9500 tons of metal. As a result, the amount of primary nickel is reduced. In addition to the above-mentioned integrated steel plants, according to incomplete statistics from SMM, more than 20, 000 tons of nickel pig iron are expected to return to China in November, from Indoferro, Xinhua Union, Xinxing casting pipe and Huadi and other Indonesian nickel pig iron plants. On the other hand, domestic production has recovered from environmental protection and power limits.According to SMM research, the national production of high nickel pig iron increased by 1.50% to 36900 nickel tons in November compared with the previous month. The water level of high nickel pig iron is higher than that of first grade nickel, which may be narrowed from the end of November to December.

On the demand side, SMM investigated the initial output of 3 series stainless steel in November 3 series 1.29 million tons, which is basically the same as that in October. The output of the third series in October was 1.27 million tons, an increase of 7.51% over the previous month. On the one hand, due to the maintenance of a steel plant in North China, the output recovered; on the other hand, due to the conversion of part of the carbon steel production capacity of a steel plant in South China to three series, the output increased, but the quantity was limited.

In terms of inventories, nickel stocks were 216600 tons, down 12 tons from yesterday, 14800 tons last Friday, up 1402 tons from the week before last, and 17600 tons more in East China on Friday than the week before last. The bonded area has a stock of 30500 tons, 1000 tons less than the week before last.