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(under review) [selected by SMM Weekly] the impact of commercial nickel collection and storage market is limited. Indonesia is rumored to be able to stop the pace of local production.
Apr 30,2020 19:24CST
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Source:SMM
The content below was translated by Tencent automatically for reference.

"SMM Nickel Industry chain Weekly report", the weekly report SMM will select one of the hot topics, prices, market or major changes in the industry chain information published for your reference.

The following is an excerpt from the weekly report of the SMM nickel industry chain:

 

According to SMM, Gansu Province is working out the "implementation Plan for the Reserve of Nonferrous Metals in Gansu Province," which reserves 436000 tons of non-ferrous metal products, including 80, 000 tons of copper, 300000 tons of aluminum, 40, 000 tons of zinc, 15000 tons of nickel and 1000 tons of cobalt. The period of reserve of non-ferrous metals is tentatively set at seven months (from 1 May 2020 to 31 December 2020). After the expiration of the reserve period, according to the market situation, determine whether to terminate or extend the reserve period. The funds required for the reserve of non-ferrous metals shall be solved by the undertaking enterprise with a loan from the bank in the form of product pledge and so on. The interest and warehousing expenses incurred during the collection and storage period shall be subsidized by the funds arranged by the provincial budget.

According to SMM research, Gansu local enterprises have received the relevant notice, the rumored reserves are not state reserves, but commercial reserves (the state provides low-interest funds to encourage enterprises to buy on their own, self-financing), and this plan is still in consultation, and the official document has not yet been released. Due to the relatively normal operation of domestic electrolytic nickel enterprises, the intention of looking forward to collection and storage is not strong from the point of view of the enterprise itself. SMM data show that in 2019, the output of electrolytic nickel in Gansu is 132000 tons, accounting for 83.8% of the national output of electrolytic nickel; the output of electrolytic copper is 530000 tons; the output of electrolytic aluminum is 2.201 million tons; and the output of refined zinc is 350100 tons.

Indonesia's mining policy is changeable and uncertain, leaving more room for speculation, with a broad range of three types of information, including mining ban policies, domestic trade prices for local nickel mines, and industrial park emergencies. However, according to SMM observation, since last year's decision to ban nickel mines, the Indonesian government's measures have been basically oriented to attract investment and safeguard the interests of local factories, so it is unlikely to hinder the pace of production of the local nickel pig iron plant.

 

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Current issue of "SMM Nickel Industry chain Weekly report" catalogue

Main points of this issue of Weekly report

 

 

Nife: stainless steel factory pre-festival large stock mood is weak part of the iron plant break-even point shipment

Stainless steel: stainless steel storage and sealing disk "virtual and real" will face the test in the future

Nickel downstream: nickel PMI performed well in April, with the exception of domestic demand as the main overseas shock may not have been fully transmitted.

Supplementary analysis of news surface: the impact of commercial collection and storage on the market is limited; rumors in Indonesia are difficult to hinder the pace of local production.

Macro focus: crude oil "field" continues to be clouded or affects the trend of the outer plate during the holiday season

 

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[high-end report of China Nickel Industry chain] the monthly report of China Nickel Industry chain includes macro interpretation, review of nickel price within month, interpretation of hot events such as nickel ore, electrolytic nickel, nickel pig iron, stainless steel and ferrochromium, etc., and simultaneous release of monthly relevant enterprise operating rate and inventory research and other data, covering the entire nickel industry chain.

[routine report of China Nickel Industry chain] the Weekly report of China Nickel Industry chain includes macro interpretation, review of nickel prices during the week, market trends such as electrolytic nickel, nickel pig iron, stainless steel and ferrochromium, weekly social inventory and future forecast, and a comprehensive interpretation of the nickel market during the week.

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