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Shanghai Nickel stopped falling and rebounded, but the demand for Nickel in the two major consumer chains is still weak [SMM Analysis]
Dec 22, 2021 18:23CST
Source:SMM
[SMM analysis: Shanghai Nickel stopped falling and rebounded, but the demand for nickel in the two major consumption chains is still weak] SMM analysis, affected by macro factors, crude oil uplink led to a general rise in non-ferrous metals, nickel prices followed, while pure nickel inventory is still at a low level, there is also a certain support for nickel prices. Basically in the face of nickel price support is still not obvious, the spot market stainless steel and new energy consumption chain demand for nickel is weak. Short-term SMM expects nickel prices to maintain range volatility.

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SMM12 March 22, since December 9, Shanghai nickel fell for five consecutive days, December 17 for the first time, this Monday (December 20) weakened again, as of December 22, Shanghai nickel has risen for two consecutive days. By the day's close, Shanghai Nickel rose 1.87% to 145820 yuan / ton.

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Spot, pure nickel, December 21, SMM research, Russian nickel quotation for 2201 contract up 1300-1500 yuan / ton, Jinchuan nickel market spot quotation concentrated in 5200-5300 yuan / ton, nickel plate rising water fell, nickel bean rising water quotation range of about flat water to rising water 300 yuan / ton, the quotation is basically stable. Spot transactions are somewhat weak, and after the delivery of warehouse receipts, the supply of goods in the market has increased, and there are also some sources of goods in Jinchuan, so there has also been a slight downward trend in Jinchuan spot prices in the past two days. At present, nickel beans are mainly shipped, and some businesses can report to Pingshui for shipment.

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Nickel pig iron: on December 21, the average price of SMM high nickel pig iron was 1245 yuan / nickel point (including factory tax), which was the same as the average price of the previous trading day. Within a few days, a special steel factory in East China traded several thousand tons of domestic iron at a price of 1260 yuan per nickel point (including tax). It is reported that some of them will be delivered by iron mills, and the transaction will take place in January next year. At present, the price of stainless steel remains stable, the downward pressure on ferronickel price continues to weaken, the reserve demand of steel mills may pick up near the end of the year, and iron prices maintain stability in the short term. The cost of the iron factory at the supply end is still high, the current price of Ferro nickel is on the low side, and the iron mill is losing profit

SMM analysis, affected by macro factors, crude oil uplink led to the general rise of non-ferrous metals, nickel prices followed, and pure nickel inventory is still low to the warehouse, there is also a certain support for nickel prices. Basically in the face of nickel price support is still not obvious, the spot market stainless steel and new energy consumption chain demand for nickel is weak. Short-term SMM expects nickel prices to maintain range volatility, focusing on EIA crude oil inventories in the week to December 17 in the United States at night.

Recently, DISER said that the rise in nickel prices in 2021 was driven by demand in the early stage and supply in the later stage. According to its latest Quarterly report on Resources and Energy, the average price of nickel in 2021 is expected to be $18388 a tonne, 34 per cent higher than in 2020. Consumption of stainless steel and strong demand for electric car batteries contributed to early gains, while supply-side shocks contributed to later gains.

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