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The situation of nickel mine is stable during the year, can the price of nickel and iron stop falling?

iconDec 6, 2019 20:57
Source:SMM

Ferronickel:

The price of high-nickel pig iron fell sharply this week. On December 6, SMM high-nickel pig iron (ex-factory price) was 960-970 yuan / nickel point, down 60 yuan / nickel point from 1010-1040 yuan / nickel point on Friday. In the early stage, the stalemate in the high nickel-iron market was mainly due to the fact that the price had fallen too quickly and the acceptance of the price had not yet been reached. Nickel prices continued to correct this week, some nickel and iron factories and traders gave up the offer and took the initiative to ship the goods. In addition to being bearish on the future, the market has also been impacted by the low price of nickel and iron in Indonesia. At present, although the amount of nickel and iron in Indonesia is relatively small, it occupies an absolute advantage in price. The inflow of this batch of goods into the market is bound to play a certain role in suppressing the price negotiations in the high nickel-iron market. In addition, the surplus demand of stainless steel plant is less during the year, generally stock has been prepared to January next year, under this background, the price negotiation of nickel iron factory is weak obviously, according to SMM research forecast, stainless steel price decline has not yet ended, high nickel iron price will still follow stainless steel price downward next week, but due to cost support, the price decline range is limited, it is expected that next week high nickel iron price runs in 930960 yuan / nickel point (ex-factory).

Nickel mine:

The price of nickel laterite imported this week remained the same as last week. On December 6th Indonesia's laterite nickel mine, 1.65 per cent (CIF), was trading at an average price of $60.50 per wet tonne, flat from Friday. The nickel market was slightly buoyant this week, with $61 at the southern port of 1.65 per cent of (CIF). Nickel prices remain at their previous high levels. Indonesia's inspection affected some of the December shipment dates and traders' plans to continue shipping, and instead of seeing a sharp increase in the supply of tradable goods at the end of the year as previously expected, the supply of tradable goods fell sharply. In addition, the Philippines was affected by the seasonal rainy season and the depletion of high nickel ore resources in Tawi-Tawi, and shipments decreased sharply, with a total of about 1.71 million wet tons of nickel ore imported from the Philippines in November and December. The supply of tradable goods does not exceed ten ships during the year, so the supply of nickel ore is slightly tight on the premise that some nickel iron plants have reserve demand, and the price of FOB remains high, and the price of nickel mine is expected or maintained to operate at this level during the year.

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