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[2020.4.22 minutes of Nickel Internal Morning meeting] Nickel spot Market atmosphere wait and see nickel pig iron inquiry price upward
Apr 22,2020 10:00CST
translation
Source:SMM
The content below was translated by Tencent automatically for reference.

 

Macroscopically, the US Senate on the 21st approved an additional $484 billion in bailout funds, and the bill will then be submitted to the House of Representatives for deliberation and approval. [Lido] the WTI contract closed down 35.78 per cent at $13.12 a barrel in June after plunging nearly 70 per cent to a low of $6.50 a barrel, triggering three circuit breakers on Tuesday. At the same time, Brent crude oil also plummeted, with June contracts falling nearly 30 per cent at one point. [bearish] China has decided to cut the regulatory requirements for reserve coverage for small and medium-sized banks by 20 percentage points in a phased manner to free up more credit to support small and micro businesses. In addition, the weight of inclusive finance in the comprehensive performance evaluation index of branches of banking financial institutions will be raised to more than 10%. [Lido]

Nickel spot, April 21 SMM1 electrolytic nickel offer 100500-102200 yuan / ton, the weakening of crude oil caused market panic, nickel prices in the morning market back to 100, 000 above the shock. Spot aspect, Russia nickel to Shanghai nickel 2006 contract report 150 to paste 100 yuan / ton, the discount range is more stable than yesterday, the downstream is still waiting to pick up the goods on demand, the transaction has not improved. Jinchuan nickel to Shanghai nickel 2006 contract rose 800-1000 yuan / ton, Jinchuan company Shanghai ex-factory price 101800 yuan / ton, the same as yesterday. Although low-liter water supply into the market, but Jinchuan nickel rising water has not been significantly reduced. On the one hand, due to the market merchants wait and see Jinchuan company ex-factory price adjustment, not in a hurry to ship, on the other hand, most traders still have a certain high-cost inventory, price reduction willingness and space is limited. Jinchuan nickel in Shengshui 800 yuan / ton has a certain transaction, Gaoshengshui quotation is more difficult to ship. Jinchuan Company Shanghai ex-factory price of 101800 yuan / ton, compared with yesterday's flat, Shanghai area has goods for sale. [neutral]

Nickel pig iron: on April 21, the price of high nickel pig iron was quoted today at 910-950 yuan / nickel point (including ex-factory tax), which was flat from the previous trading day. East China a special steel plant nickel pig iron inquiry price 960 yuan / nickel point (to the factory including tax), according to market understanding, there have been a small number of transactions. Nickel price fell slightly, iron factory psychological price is still higher than 950 yuan / nickel point (ex-factory including tax), the mainstream stainless steel factory does not have quotation inquiry. The price of high nickel pig iron continued to rise, the main driving force of the rise is: 1. The production of the nickel iron plant is reduced greatly, and the supply end is tighter than before; 2. When the nickel price increases, the economy of the rest of the nickel raw materials becomes worse than that of nickel and iron. 3. The inventory of nickel mine is low, and the iron factory is more willing to bid. [Lido]

Stainless steel: on April 21, 304 private cold rolling in Wuxi area quoted 13100-13300 yuan / ton, the average price increased by 100 yuan / ton, hot rolling quoted 1280013000 yuan / ton, the average price increased by 150 yuan / ton. Price continues to weaken, quoted 7100-7300 yuan / ton, there are individual low prices can be quoted to 7000 yuan / ton shipment. Traders said that transactions in the past two days than before a slightly weaker trend, but at present some 304 stainless steel spot resources are on the low side, prices continue to be strong. According to research and understanding, Hongwang cold rolling part of the thickness resources are out of stock, the market Delong supply is more, but also still raising the price. At present, the spot circulation of some specifications is still limited, and the price of stainless steel is expected to remain strong. For 10:30 SHFE SS2006 contract price 13155 yuan / ton, Wuxi stainless steel spot water 115-315 yuan / ton. [Lido]

A steel plant in the north plans to carry out annual maintenance in early May, rotating from the steelmaking-hot rolling-cold rolling process, which is expected to last for about half a month, affecting the output of 20,000 tons, 300 and 400 series products.

On the inventory side, Lunni stocks on 21 April were 230016 tons, a decrease of 174 tons from 20 April.

Nickel price judgment: macro marginal improvement, fundamentals short-term situation is OK, and overseas producers of production expectations have been reduced to further stimulate market sentiment, nickel prices are expected to be strong shock this week, although once broke the 60-day moving average, but the high level of stability is slightly inadequate. Lunni closed in the small negative column last night, the K column broke the 60-day moving average, the lower 5-day moving average is supported, Lunni opened at $11620 / ton today, follow-up attention to the 5-day moving average support for Lunni.

Nickel
minutes of the internal morning meeting

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