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[summary of SMM Morning meeting] Nickel Mine negotiations at Shanghai Nickel pass 100000 narrow range concussion Nickel Mine negotiations strong prices will squeeze Nickel Pig Iron profits
May 26,2020 10:00CST
The content below was translated by Tencent automatically for reference.

Nickel price judgment: the market temporarily operates smoothly, there are shocks near the Shanghai Nickel 100,000 pass, the rising water of Russian nickel spot is basically stable, the trading atmosphere is weak, the market lacks obvious price fluctuation factors, and the overall performance is weak and stable. Recent fundamentals are mainly concerned about whether the price of nickel pig iron can remain strong after the latest profits of stainless steel have narrowed, as well as the recovery of overseas consumption.

January, May 25th SMM1 Electrolytic Nickel quotation 100600 RMB101900 / ton. After a brief shock at the opening of trading in Shanghai yesterday, the nickel price changed less than last Friday, and the lower reaches once held more wait-and-see. As traders in the city lowered the discount, some transactions were reached one after another, but the trading volume varied from good to bad. In terms of Russian nickel, the mainstream quotation in the morning market is more than 100 yuan / ton to Pingshui, and the transaction is weak. In the second trading session of the morning market and in the afternoon, some of the market merchants lowered the discount to 200 RMB150 / ton, stimulating downstream to take goods, recording a certain transaction; but most traders due to weak market demand, the whole day trading volume is not good. Jinchuan Nickel to Shanghai Nickel 2007 contract rose 1,100,000,000 yuan / ton, the transaction is not good. The supply of some traders is still on the way to Shanghai, so Jinchuan nickel is strong due to tight supply. The ex-factory price of Jinchuan is 101500 yuan / ton, and traders have a small amount of No. 2 nickel and No. 3 nickel to receive goods in Gansu. The discount for nickel beans has been reduced to 1000 yuan / ton.

2. On May 25th, the ex-factory price of SMM high nickel pig iron is 970mur990 yuan / ton (including factory tax). Yesterday, there was no inquiry about the quotation of the mainstream stainless steel factory in the market, and the price of the iron factory remained high. Under the premise of the weak and stable operation of nickel price, the wait-and-see mentality of stainless steel factory was enhanced.

Recently, the procurement of nickel pig iron in large steel mills has basically come to an end, and the market focus has shifted to nickel mines. The shortage of nickel ore has become a reality in the current market, so it is difficult to negotiate a new round of FOB quotation. 1.5% of the Philippine laterite nickel mine CIF quotation has reached 45 US dollars / wet ton in the market, and the transaction is not yet known. It is expected that under the seller's market atmosphere, there is little room to lower the price in the buying direction.

3, May 25th Wuxi spot price of stainless steel is generally stable, there are individual traders 304 hot rolling slightly reduced 50 yuan / ton, the quotation range is: 304x2B rough edge crimping price range 13500 Mel 13800 yuan / ton; 304 NO.1 quoted 13150mur13250 yuan / ton, the average price is reduced by 50 yuan / ton; 3042B factory roll price quoted 1390014100 yuan / ton price stable. Last Friday, Castle Peak Steel released a new offer price for July, which was cut by 300 yuan / ton for both hot and cold rolling, but the spot market price is relatively stable and there is no big fluctuation. Some traders reflected that the market spot resources did not concentrate a large number of arrival, the trend is relatively stable, but the follow-up prices may be dragged down by weak downstream demand. For 10:30 SHFE SS2007 contract price is 13275 yuan / ton, Wuxi stainless steel spot water is 395mur695 yuan / ton. (spot trimming = rough edge + 170 yuan / ton)

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