[minutes of SMM Morning meeting] Nickel spot rising water continues to slide down stainless steel and nickel pig iron prices have hidden worries about falling.

Nickel price judgment: the spot of pure nickel is still not optimistic, the import supply is concentrated and the downstream consumption has not improved, and the market supply is on the high side; nickel pig iron is due to the rise in nickel price and the cautious procurement of steel mills, while the available supply has increased in the near future, and the market is stuck in a stalemate. The recent boost in nickel prices is mainly due to macro factors, and the market expects a production reduction agreement at the crude oil conference. However, due to the sudden increase in market expectations of crude oil production reduction, macro sentiment has plummeted and the pressure on Shanghai nickel has fallen; in terms of consumption, from the PMI data of various countries, China is still expanding its range, and overseas is still at a low ebb under the influence of the epidemic, but the margin has improved to a certain extent. Taken together, the price of nickel this week may show a slightly weak volatility trend, it is estimated that Lunni 12400Mel 13000 US dollars / ton, Shanghai Nickel 101500Mel 105000 yuan / ton.

1. Last week, the average weekly price of SMM1 nickel was 102930 yuan / ton. As higher prices have suppressed downstream purchasing enthusiasm, trading in the spot market has become increasingly light. In the continuous supply of imports into the market at the same time, the Russian nickel discount continues to expand in the middle of the week, gradually reduced from 200 yuan / ton to 300 Mel 400 yuan / ton for 07 contract. At the same time, the price difference of Shanghai nickel has also widened to about 400 yuan / ton in recent months. Jinchuan nickel rising water also continued to narrow during the week, with the contract for Shanghai Nickel 2007 rising by 1200 yuan / ton at the beginning of the week, and the market transaction price was mostly 800 yuan / ton by Friday. Jinchuan Company shipped an appropriate amount of goods in Gansu area, but there is no shipping plan in Shanghai area for the time being. The foreign trade market continues to be light, due to the continuous downward revision of Shanghai-to-London ratio, there is almost no trading in the bonded area, but recently, bills of lading continue to arrive in Hong Kong, so the supply of Russian nickel will continue to increase in the near future, which will continue to put pressure on spot rising water.

2, June 5 SMM high nickel pig iron ex-factory price of 960Mel 980 yuan / nickel point (including factory tax), the same as the previous trading day, last week's high nickel pig iron market inquiry price around 990 yuan / nickel point (including factory tax), Friday market turnover is light, the price is still a slight downward trend, although the decline is limited, but for the current manufacturers near the break-even line, the price drop means that profits will once again turn negative from positive to negative. In addition, according to the current survey of production, capacity in some high-cost areas has initially shown a trend of withdrawal, and it is expected that there will be significant changes in domestic production capacity in the third quarter. Output may still maintain a small upward trend, mainly because large iron mills still have a large reduction in production in the early stage, and large factories now have the intention to gradually recover production with the withdrawal of high-cost production capacity.

SMM6 March 5: a stainless steel factory in South China this week high nickel pig iron transaction price of 991 yuan / nickel point (including tax to the factory), turnover 6000 tons. The factory has made frequent inquiries recently, and it is still mainly in the mode of competitive bidding.

3. On June 5, the spot quotation for cold and hot rolling of stainless steel 304 in Wuxi was slightly reduced. The price range of 304xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Operators generally react to the weakening of trading, the light atmosphere of inquiry, and the arrival of some Indonesian resources this week, the increase in the volume of goods in the market, the mood of some merchants to sell goods at a profit, the trend of weakening the surface of superimposed futures, and spot prices are all down to a certain extent. For 10:30 SHFE SS2008 contract price 12945 yuan / ton, Wuxi stainless steel spot water 575mur875 yuan / ton. (spot trimming = rough edge + 170 yuan / ton)