Low Inventory and Demand to Push SHFE/LME Nickel Price Ratio Higher

Published: Sep 17, 2021 17:30

Save

Affected by the sharp reduction in stainless steel output in China this past week, the domestic nickel price trended lower this past week.

SHANGHAI, Sep 17 (SMM) – Affected by the sharp reduction in stainless steel output in China this past week, the domestic nickel price trended lower this past week. This combined with big import profits drove large influx of imported nickel. As such, the SHFE/LME nickel price ratio fell rapidly.

Nonetheless, there was still an inflow of 1,600 mt of pure nickel into the bonded area, most of which was spot cargoes. The current quotes for imported nickel are still limited in the market.

The reduction in stainless steel output will intensify next week, and the marginal demand for pure nickel will decrease. However, due to the current decline in pure nickel inventory in China, it is expected that the nickel price ratio will rebound in the future.

nickel inventory

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.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

17 hours ago

[SMM Analysis] Sulfur Market: Supply Contraction & New Energy Surge Keep 2026 Tight.

In 2025, the sulfur market experienced wild swings under the dual impact of multiple supply-side contractions and the rapid release of demand from the new energy sector, with prices rising by more than 200 over the year. Looking ahead to 2026, the tight supply-demand landscape is expected to persist.

17 hours ago

18 hours ago

[SMM Stainless Steel Flash] India’s Stainless Steel Industry Faces Supply Gap Amid Rising Domestic Demand

India’s stainless steel sector is grappling with a significant imbalance between domestic capacity and the surging demand for high-quality materials. Despite robust growth in infrastructure and construction, local production struggles to keep pace, while low-priced imports continue to hinder the full utilization of domestic facilities. To address these gaps, industry players are focusing on strengthening local scrap recycling systems and enhancing technical capabilities to meet international standards. Balancing domestic output with consumption remains a critical priority for the long-term stability of India's stainless steel value chain.

18 hours ago

Data: SHFE, DCE market movement (Mar 24)

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on 24 Mar , 2026

18 hours ago