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[SMM Weekly report selected] the supply side increases, it is difficult to change the tense situation of nickel iron, the falling price of nickel drags down the quotation mentality of nickel iron market.
Sep 12,2020 11:29CST
translation
Source:SMM
[SMM Weekly selection] Macro-factors triggered market panic, affecting not only safe-haven assets such as gold and silver, but also basic metals. From a fundamental point of view, the peak of stainless steel prices and increased profit pressure are the factors restricting the upward rise of nickel prices, but they are not the decisive factors in the near future. spot nickel prices are strong, and nickel pig iron has little room to fall. There is still a gap between the supply and demand of primary nickel in the third quarter, so the decline in nickel prices may not be a long-term trend. at present, macro sentiment and bears have the upper hand, making it difficult for nickel prices to rebound quickly. Nickel prices are expected to fluctuate in a wide range near the current low in the near future, and may be expected to be repaired later.
The content below was translated by Tencent automatically for reference.

"SMM Nickel Industry chain Weekly report" is released. SMM will select hot topics, prices, quotations or major changes in the industry chain and release information for your reference.

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

Macro factors triggered market panic, affecting not only safe-haven assets such as gold and silver, but also basic metals. From a fundamental point of view, the peak of stainless steel prices and increased profit pressure are the factors restricting the upward rise of nickel prices, but they are not the decisive factors in the near future. spot nickel prices are strong, and nickel pig iron has little room to fall. There is still a gap between the supply and demand of primary nickel in the third quarter, so the decline in nickel prices may not be a long-term trend. at present, macro sentiment and bears have the upper hand, making it difficult for nickel prices to rebound quickly. It is expected that the near-term nickel price in the current low near the wide range of strong shocks, or can look forward to later repair. It is estimated that next week, Shanghai nickel is 114000-120000 yuan / ton, Lunni is 14500-15300 US dollars / ton.

Although the output of nickel pig iron has increased slightly, the overall supply is still relatively tight. in the case of no obvious increase on the supply side, the price of nickel and iron has shown a trend of slight correction this week, mainly due to:

1. The price of nickel fell sharply. The price of Ferro-nickel rose to pure nickel, and the falling nickel price brought pressure on the seller's market mentality. Worried about the future, the holder's offer mentality weakened slightly.

two。 The price of stainless steel is affected by the weakening of consumption in the spot market, the price falls, the profit margin narrows (see stainless steel), while the profit space of the raw material side is still large, the buyer squeezes the profit of the raw material, and the inquiry quotation is also lower.

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Catalogue of "SMM Nickel Industry chain Weekly report" in this issue

Main points of this issue's weekly report

Outlook for the balance of supply and demand of Primary Nickel in China: the gap will narrow by the end of the year, but there is still support for high nickel prices.

Nickel pig iron: the supply side increases, it is difficult to change the tense situation of nickel iron, the falling price of nickel drags down the quotation mentality of nickel iron market.

Stainless steel: stainless steel production hit a new high in August. It is expected that the annual output will be slightly higher than last year.

Electrolytic Nickel: shortage in Shanghai Jinchuan Nickel rising Water Factory overhaul will affect September output

Nickel sulfate: downstream demand resumes superimposed product price increases to stimulate smelter willingness to start work

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[China Nickel Industry chain High-end report] China Nickel Industry chain monthly report includes macro interpretation, monthly nickel price review, interpretation of hot events in various sections of the nickel industry chain (nickel ore, electrolytic nickel, nickel pig iron, stainless steel, ferrochromium) and other hot events, future forecasts, and Synchronize releases monthly relevant enterprise operating rate and inventory survey data, covering the entire nickel industry chain.

[China Nickel Industry chain routine report] China Nickel Industry chain Weekly report includes macro interpretation, weekly review of nickel price, market trends of various sections of nickel industry chain (electrolytic nickel, nickel pig iron, stainless steel, ferrochromium), weekly social inventory, future forecast, comprehensive interpretation of the nickel market in the week.

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