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SHFE Nickel Prices will Remain Rangebound at High Levels Supported by the Strong Fundamentals
May 5, 2022 10:33CST
Source:SMM
Last week, the prices of LME nickel fluctuated between $32,000/mt and $33,880/mt, and the liquidity was not improved.

SHANGHAI, May 5 (SMM) - Last week, the prices of LME nickel fluctuated between $32,000/mt and $33,880/mt, and the liquidity was not improved. The daily traded volume decreased by 700 lots to around 1,700 lots. SHFE nickel remained rangebound at high levels. At the beginning of last week, although nickel prices were pulled back due to macro factors such as the Fed's interest rate hike and the shrinking of the balance sheet, the shortage of supply still provided strong support to the prices. In addition, the shortage of nickel tightened the supply of nickel sulphate. If the output of high-grade nickel matte can increase substantially, the supply tightness of new energy products and nickel briquette will be alleviated. However, the production of high-grade nickel matte could not meet expectations last week. To sum up, nickel prices bore huge pressure from the poor demand, while the tight supply gave strong support to the prices. SHFE nickel prices are expected to remain rangebound at high levels in the short term. SHFE nickel is expected to move between 218,000-238,000 yuan/mt, and LME nickel will move between $32,000-34,000/mt.



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