Nickel Prices Remained Rangebound at Low Levels Last Week due to the Falling Futures Prices Earlier

SHANGHAI, Jul 4 (SMM) - On the macro front, the Fed once again said that it would raise the interest rates in July and would probably raise the rates by 75 basis points, which is bearish for the nonferrous metal prices. On the supply side, the rebound of SHFE nickel prices and the high premiums in the bonded zone further weakened the price ratio, and the spot imports turned into losses. In terms of NPI, the falling NPI prices suppressed the upstream's willingness to quote and ship, and the higher costs of NPI brought losses to the manufacturers. The plants had to accept the prices amid the weak demand. Recently, affected by the drop in nickel sulphate prices, the salt plants were less willing to ship, resulting in a tight supply of nickel sulphate. On the demand side, in terms of stainless steel, the pandemic in China has been controlled, and consumption improved. However, the release of demand is slow in the short term, and the high in-plant inventory needs to be digested urgently. Affected by the purchase cycle and the rising spot prices of pure nickel, the purchase of alloy was poor. Nickel prices may remain rangebound at low levels due to the macro impacts and the weak demand. To sum up, the demand for pure nickel remains poor even though the downstream purchased on rigid demand, while the supply is expected to be sufficient. Therefore, in the long run, nickel prices will remain rangebound at low levels. SHFE nickel prices are expected to move between 163,000-180,000 yuan/mt. At present, the LME nickel prices have not yet returned to the fundamentals, and the prices may fluctuate. When the prices return to normal, SMM will resume the price forecast of LME nickel.