Metals News
[SMM analysis] low market transaction caused by high nickel iron premium compared with pure nickel
Aug 9,2019
The content below was translated by Tencent automatically for reference.

SMM, Aug. 9 / PRNewswire-Asianet /-

On the supply side, according to SMM research, the output of high nickel pig iron increased by 3.18% to 43500 nickel tons in July compared with June, mainly due to the production of new furnaces in Jiangsu and Liaoning and the recovery of production in Shandong.

On the demand side, according to SMM research, the inquiry price of high nickel iron in a steel plant in southern China at the beginning of this week was 1060 yuan / nickel point, and the actual transaction price was 1060 to 1080 yuan / nickel point including tax. After the nickel price rose sharply on Thursday, the actual transaction price was 1080 to 1100 yuan / nickel point. An inquiry price of high nickel iron in a steel plant in North China this month is 1040 yuan / nickel point, including tax, which is 85 yuan / nickel point higher than the purchase price last month.

In general, the nickel iron market this week to maintain last week's transaction is cold, the mainstream transaction at the beginning of the week near 1080 yuan / nickel point, to the factory tax, with the strong rise in nickel price, so far known the highest transaction price in 1100 yuan / nickel point, but at present, the nickel iron market quotation is very chaotic, the recent source of goods is less, can refer to the quotation is less, the forward source of goods involves the view of the future market, buyers and sellers have great differences, pricing is difficult. Indonesia's stainless steel production is expected to decline in August compared with July, focusing on whether Indonesian nickel-iron imports can ease the tight spot market situation in August and beyond. At the same time, we need to guard against the purchasing rhythm of steel mills. In the early stage, some steel mills elongated the stock cycle, from the original stock of raw materials from 1 to 1.5 months, extended to the purchase of 2 months of raw material inventory, resulting in the pre-demand. In the later stage, if the steel mill stops purchasing, let the raw material inventory return to normal, then the demand of overbought in the early stage will become a drag on the demand in the later stage. This Friday high nickel iron than pure nickel premium discount 164yuan / nickel point, has hit a new low, in the face of the rising nickel price, the current nickel iron although the offer is ready to move, but the actual transaction is still weak.


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