Although the SHFE-LME Price Spread has not been Repaired, the Inventory in the Bonded Area has Changed Little

SHANGHAI, May 13 (SMM) - Affected by macro factors such as the US Federl Reserve’s raising interest rate and the shrinking balance sheet, LME nickel maintained a decline trend this week and fell below $30,000. SHFE nickel fell slightly from the previous high, but fluctuated at the 200,000 yuan/mt. Therefore, the current LME/SHFE price spread has not recovered. Shanghai free trade zone had 8,800 mt of nickel this week, composing of 2,900 mt of nickel briquette and 5,900 mt of nickel plates, which was the same as last week. The inventory in Shanghai free trade zone remained almost unchanged, mainly due to the suspension of import and export in Shanghai free trade zone amid pandemic in Shanghai. At present, disturbed by macro factors, both internal and external markets have fallen. Although the domestic rigid demand still exists, the decline in demand caused by the pandemic will drag down the nickel prices. In the short term, imports are expected to remain at a loss next week.