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[SMM Analysis] the price of nickel rises sharply and ferronickel does not expand as much as the discount.
Jul 14,2019 21:17CST
translation
Source:SMM
The content below was translated by Tencent automatically for reference.

SMM, July 14 / PRNewswire-Asianet /-

On the supply side, according to SMM research, a 33000KVA mine heating furnace originally scheduled to resume production in July has been sent electricity today, and iron is expected to be officially released in late July. Demand side, according to SMM research, a steel mill in the south this week high nickel iron transaction price of 970 to 980 yuan / nickel point, to the plant including tax, flat inquiry and last week's price, of which the extra large single transaction price increased by 20 yuan / nickel point to 1000 yuan / nickel point, only one transaction is known at present. The transaction price of high nickel iron in a steel mill in East China this week was 970 to 980 yuan / nickel point, including tax, up from 965 to 970 yuan / nickel point last week. The purchase price of high nickel iron in some special steel plants in East China can reach 990 yuan / nickel point, which contains tax, but because of its small purchase quantity and certain requirements for the quality of nickel iron, the price is often higher than the purchase price of some non-rust steel plants. Generally speaking, although there are 1000 yuan / nickel point transactions in the south and 990 yuan / nickel point transactions in East China Special Steel Plant this week, these prices have some specific requirements, either the quantity is particularly huge, or there are certain requirements for trace elements. Although the proportion of 1000 yuan / nickel point of view is not small from the quantity of ferronickel, but from the number of companies, the mainstream transaction is still maintained at last week's high price of 980 yuan / nickel point. In the exchange between SMM and the market, especially at the beginning of the week, although the idea of price increase has been ready to move, but because the price of steel mills did not rise, the real transaction did not rise; Starting on Thursday, the transaction price of 1000 yuan / nickel point in the mainstream steel mill has been widely circulated in the market, and the purchase of superimposed southern steel mills is still more active, and the market supply is still in a tight balance, so that the price difference between the bulk order price and the extra large order is 20 yuan / nickel point, so it is not ruled out that if the nickel price remains high next week, the prices of other factories will rise somewhat. In addition, the price of 1000 yuan / nickel point may be interpreted from two aspects, on the one hand, it is indeed higher than before, but on the other hand, if the average import price of nickel on Thursday is 102800 yuan / ton, assuming that the shipping fee of 15 yuan / nickel point is deducted, the ex-factory price will still discount pure nickel 43 yuan / nickel point, which may also show that ferronickel is still under considerable pressure behind the tight spot. In the later stage of development, the premium of high nickel iron to electrolytic nickel is still a good index to observe the change of supply and demand of nickel iron, which is worthy of continuous attention.

 

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