[2020.5.7 minutes of Nickel Internal Morning meeting] Nickel spot downstream is still bargain purchasing mainly stainless steel take the initiative to raise prices to seek to expand profits

Published: May 07, 2020 09:54 (GMT+8)

Nickel price judgment: after the festival returned to the city stainless steel prices actively increased, the nickel market also recovered the decline during the May Day holiday. The price of stainless steel rebounded recently, on the one hand, because of the rise in the price of nickel, iron and nickel, and the increase in the cost of raw materials, steel mills raised the price; on the other hand, the social inventory of stainless steel fell by nearly 200000 tons to 930000 tons in April, and the concentrated release of demand led to a decline in inventories. if stainless steel profits and scheduling can be stabilized in the current position, and even as demand continues to expand, it is a strong support for nickel products. Lunni 12000-12400 US dollars / ton, Shanghai nickel 100000-103000 yuan / ton.

1. May 6 SMM1 Electrolytic Nickel quoted 98100-99900 yuan / ton, the average price is down 2250 yuan / ton compared with April 30. As the outer plate fell during the holiday, Shanghai nickel jumped short and opened low. Russo Nickel to Shanghai Nickel 2006 contract quoted near Pingshui, non-deliverable Russian Nickel can take goods at a discount, while some traders rose to 100 yuan / ton, can reach a certain deal at the beginning of the day, with the future nickel price rebounding, traders gradually adjust the price to flat water. Jinchuan nickel to Shanghai nickel 2006 contract rose 1400-1500 yuan / ton, the morning market inquiry is more active, but the market transaction is less. Jinchuan Company has arrived in Shanghai, and the ex-factory price is 100000 yuan / ton, which is lower than the rising price. It is reported that the manufacturers shipped less in Shanghai, and most traders took the goods in Jinchang, Gansu Province. Jinchuan Nickel Water was lowered to 1,200 RMB1,300 / ton in the afternoon, but the transaction still did not improve.

2. On May 6, the price of SMM high nickel pig iron was quoted at 950-960 yuan / nickel point (including tax), which was the same as that of the previous trading day. The price of raw material nickel mine rises, the cost pressure increases compared with the early stage, the iron factory is willing to raise the price, the ex-factory psychological price is still higher than 950 yuan / nickel point. There is no quotation inquiry for the steel mill, but the psychological price is still maintained before the festival 970-980 yuan / nickel point (to the factory including tax). Nickel and iron prices are expected to remain strong in the short term.

3. On May 6, most traders in Wuxi area reported flat cold rolling prices, with individual traders slightly rising 50-100 yuan / ton, and 304 2B rough edge roll prices quoted in the range of 12900-13300 yuan / ton, with an average price increase of 50 yuan / ton compared with that before the festival. 304 NO.1 quoted 12600-12900 yuan / ton. At noon, Yongjin quoted a new price, 304 cold rolling four feet and five feet price increased by 200 yuan / ton, 304ft quoted 13100 yuan / ton, 304ft quoted 13200 yuan / ton. Subsequently, the quotation of traders followed the rise, and the market quotation was generally raised by 100 yuan / ton. The plate price of 304hot-rolled narrow strip was increased by 200yuan / ton to 12600 yuan / ton, and the hot-rolled plate price was increased by 100yuan / ton to 12800 yuan / ton. It is understood that the transaction atmosphere is active.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

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