[minutes of SMM nickel internal morning meeting] Electrolytic nickel market transaction improvement stainless steel transaction is still general

SMM, April 9, 2010:

Macroscopically, the dollar finally said goodbye to its recent strength yesterday as encouraging economic data from China and the US last week boosted sentiment and allayed concerns about the global economy. Investors reduced their safe-haven positions in the dollar, and dollar bulls emerged on Friday after a strong non-agricultural rally led to a rise in the U.S. Index, pushing the dollar back down. On the crude side, oil prices rose sharply as the conflict between the United States and Iran intensified, fueling fears of supply disruptions in some OPEC-producing countries.

Nickel price judgment: market attention gradually shifted to potential bearish points: 1. East China large nickel pig iron plant and Indonesia nickel pig iron production capacity as planned, nickel pig iron supply is expected to remain loose. 2. According to SMM research, the overall transaction of stainless steel is general, the recovery of downstream demand is less than expected, stainless steel prices continue to decline, steel mills to increase production power or weaken. However, the spot resources in the short-term nickel pig iron market are tight, the output of the stainless steel plant is still high, and the technical 100000 level support is strong, the short-term nickel price may continue to fluctuate, and continue to pay attention to the transaction situation and inventory data of the stainless steel market in the future. The performance of high nickel pig iron is higher than that of pure nickel.

Spot, yesterday SMM 1 # electrolytic nickel 103300 to 104200 yuan / ton. In the morning, Russian nickel was 1904 yuan / ton higher than Wuxi 1904, and Jinchuan nickel was 1200 yuan / ton higher than Wuxi 1904 contract. Early trading session, the market is more active, 10.29-103000 yuan near the transaction more, part of the downstream last week did not replenish the warehouse, this week as needed to pick up the goods. At present, the rhythm of taking goods downstream is only on demand, and the willingness of traders to lift water is also strong. Jinchuan nickel trading is relatively general, Jinchuan supply this week is relatively loose, rising water to maintain stability. The current nickel bean discount is about 800 yuan / ton, which is about 1100 yuan / ton less than that of Russian nickel, and the supply of goods is more relaxed than that of Russian nickel. Jinchuan ex-factory price of 103600 yuan / ton, down 1000 yuan / ton from Friday, the mainstream transaction at 103100-104000 yuan / ton. Afternoon nickel price around 102900 yuan concussion, afternoon transaction light, downstream morning has basically ended the purchase, the whole day transaction improved compared with last week. The mainstream transaction is 103100 to 104000 yuan / ton.

A stainless steel plant in the south continued to suspend purchases of high-nickel pig iron this week, the fourth week of the suspension, according to SMM research. The last purchase price is 1060 yuan / nickel point (16% VAT), including tax. According to SMM data, yesterday, high nickel pig iron than pure nickel sticker 13 yuan / nickel point.

Stainless steel, according to SMM understand yesterday 200 series hot rolling up 50 yuan / ton, 200 series hot rolling inventory is on the low side, the market is out of stock. Foshan some stainless steel agents 300 series quotation rose 50 yuan / ton, but some steel mills reflect that the downstream transaction is more general, the future continues to rise in doubt.

On the inventory side, nickel stocks totaled 179300 tons on the 8th, down 1224 tons from the previous day. Last Friday, the last exchange + East China inventory + bonded area stocks totaled 54694 tons, down 3.1 per cent from the previous Friday. Specifically: last period stocks of 9100 tons, compared with the previous Friday down 1828 tons; East China stocks last week compared with the previous Friday increased by 800 tons to 17700 tons, bonded area stocks decreased 700 from the week before last, about 27900 tons.