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[minutes of SMM Morning meeting] Nickel drop in the period stimulates the spot operation of some downstream stainless steel purchases to be stable.
Jul 21,2020 09:52CST
The content below was translated by Tencent automatically for reference.

Nickel price judgment: the recent market is greatly affected by the capital side. Due to the lack of fundamental support for the rise, the layout of high bears has increased, while Shanghai Nickel has also returned to the vicinity of the platform level of 105000 yuan / ton after four consecutive overcast. At present, the long-short game is still continuing, below or temporarily supported by the 20-day moving average, short-term prices or upward consolidation after a continuous decline. It is estimated that during the week, Shanghai nickel 105000 won 108000 yuan / ton, Lunni 13150 won 13700 US dollars / ton.

1. On July 20th, SMM1 Electrolytic Nickel quoted price 103400mur104600 yuan / ton. The spot market is still quoted for 08 contracts, as nickel futures fell back to the low shock, stimulating the downstream to enter the active inquiry, today's morning trading situation is OK, weakening in the afternoon. Russo Nickel to Shanghai Nickel 2008 contract is quoted at 500 to 400 yuan / ton, the supply of low-priced goods is less, and the trading volume is less than Jinchuan Nickel. Jinchuan Nickel to Shanghai Nickel 2008 contract rose 400 won 500 yuan / ton in the morning market. It is reported that the price of 500 yuan / ton in the morning market is more difficult to ship, as Jinchuan company quoted an ex-factory price of 105000 yuan / ton and shipped in Shanghai, the merchants in the market actively adjusted the price and recorded a certain deal. The price of nickel beans is 1300ml 1200 yuan / ton, and the discount range has narrowed due to the reduction of nickel bean inventory.

2. At the beginning of July 20, the spot price of stainless steel in Wuxi was mainly flat, with the cold rolling price range of 13500 won 13700 yuan / ton and the 304 hot rolling price of 13000mil 13100 yuan / ton, which was the same as the average market price last Friday. Today, Wuxi stainless steel spot market overall shipping rhythm is temporarily stable, the market has some new resources to the factory, businesses decide whether to give preferential profit space, SMM expects the overall stable operation of each series of steel prices in the short term, the supply of cold-rolled sheet below 1.0mm is tight, the quotation is higher than the market average, hot rolling is in normal condition, and the overall market transaction is weak. Today, SHFE 10: 30 SS2009 contract price 13335 yuan / ton, Wuxi stainless steel spot water 335mur535 yuan / ton. (spot trimming = rough edge + 170 yuan / ton)

3. On July 20th, SMM high nickel pig iron quoted 960mur965 yuan per nickel point, which was the same as the average price of the previous trading day. There has not been a substantial change in the focus of actual negotiations between buyers and sellers in the near future under the game, but the fluctuation of nickel price will still affect the mentality. At present, the supply of high nickel pig iron market is in the hands of traders, which is stronger than the factory's bargaining mentality. In order to protect the few profits of the 300 series, the stainless steel factory also maintains its price reduction mentality, and it is expected that the price center of gravity will be stable or slightly upward in the short term.

minutes of the internal morning meeting

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