Non-ferrous Association: the current nickel price is seriously deviating from the fundamentals.

Recently, sharp fluctuations in nickel prices have aroused concern from all parties. In this regard, a reporter from China Nonferrous Metals Daily interviewed the relevant responsible person of the China Nonferrous Metals Industry Association.

Reporter: March 7-8, LME nickel futures prices rose irrationally. LME nickel futures closed at $50300 / ton on March 7, while LME nickel futures climbed to a record high of $101365 / ton on March 8. On the afternoon of March 8, LME declared that all nickel trading on that day was null and void, suspended nickel trading, and decided not to resume until March 11. What do you think of this matter?

A: the China Nonferrous Metals Industry Association pays close attention to this. We believe that the current nickel price seriously deviates from the fundamentals, loses the guiding significance of the spot price, deviates from the original intention of serving the real economy, and has caused serious harm to the global nickel and upstream and downstream related industries.

Reporter: at present, downstream enterprises have reduced production and stopped taking orders, and spot trade is close to stagnation. Enterprises are very anxious, in this regard, how to treat this problem?

A: nickel is a key raw material for the production of stainless steel and new energy batteries. Chinese nickel products not only meet domestic needs, but also some products have entered the global supply chain and become an important part of global supply chain security. The Chinese market is stable and the global market is stable. We believe that the Chinese government attaches great importance to the safety of the nickel industry chain. In fact, last year, when the price of non-ferrous metals skyrocketed, affecting the safety of the industrial chain, the relevant government departments adopted targeted measures to store copper, aluminum and zinc, which achieved very good results.

Reporter: under the current environment, how to ensure the stability of the global nickel industry chain? What do you think of the nickel investment of Chinese enterprises in Indonesia in recent years?

A: nickel is a variety with a high degree of external dependence in China. the government and non-ferrous industry associations encourage enterprises to "go out" and develop resources for the benefit of the world. In 2021, Indonesia will become the world's largest nickel producer, which is the result of the combination of Chinese technology, capital and Indonesian resources, and is a win-win result. China and Indonesia are highly recognized by both sides, and it is also obvious to the whole world. The nickel investment of Chinese enterprises in Indonesia has brought well-being to the people of the two countries and made important contributions to regional and global prosperity and stability.

Reporter: at present, commodity prices fluctuate greatly, how can the non-ferrous metals industry do a good job in ensuring supply and stabilizing prices?

A: in accordance with the work requirements of the CPC Central Committee and the State Council on ensuring and stabilizing the prices of commodities, the Nonferrous Association will closely follow the operation of the industry, report to relevant departments in a timely manner, study and put forward suggestions, warn enterprises of risks, and publicize the spirit of policy documents. Enterprises in the non-ferrous industry should consciously practice the Convention on self-discipline of China's Nonferrous Metals Industry, strengthen industry self-discipline, stabilize market expectations, maintain market price order, and prevent malicious speculation and irrational sharp rise in the prices of non-ferrous metal products. through the organic integration of domestic and international double cycles, we will try our best to ensure the stable and healthy operation of the domestic cycle.

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