SHANGHAI, Dec 3 (SMM) - The SHFE/LME nickel price ratio rallied this week after remaining sluggish for several consecutive weeks. SMM believes that the resurgence of the COVID-19 pandemic has triggered overseas concerns over the collapse in the demand.
The domestic demand was stable. Meanwhile, the arriving shipments in China continued to decrease. However, the output of nickel sulphate and stainless steel remained high. The domestic nickel inventory declined this week.
Large volumes of planned shipments arrivals of nickel briquette and nickel plate may impact the domestic supply. This combined with the weak downstream buying interest will increase domestic inventory. As such, the upside room for the SHFE/LME nickel price ratio will be limited.
