Nickel Ore Prices Varied Approaching the Rainy Season

Published: Sep 19, 2022 17:33

Source: SMM

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The average price of Ni 1.5% ore stood at $67.5/wmt on a CIF basis last Friday September 16, flat from a week earlier.

SHANGHAI, Sep 19 (SMM) - The average price of Ni 1.5% ore stood at $67.5/wmt on a CIF basis last Friday September 16, flat from a week earlier. Prices of medium-grade and high-grade nickel ore did not change significantly, but the FOB and CIF prices of low-grade ore rose palpably. On the supply side, mines held the prices firm due to the approaching rainy season. Among them, sources of low-grade ore were scarce ahead of the rainy season, so the prices were high, with the quotes of low-nickel and low-aluminium ore rising to about $41/mt, on a CIF basis. However, buyers and sellers were still wrestling over the prices of medium-grade ore. On one hand, the downstream market expected the recovery of the stainless steel market to be limited and held the view that the terminal demand might not increase for a long time. The high in-plant inventory of NPI plants dragged down the NPI prices, and the plants were not willing to reduce the NPI prices in order to mitigate the risk of costs in the future. Due to the rainy season and the low inventory, the nickel ore prices will probably rise slightly, which also supports the NPI prices to a certain extent. Short-term Ni 1.5% ore prices will probably rise to about $68-72/wmt.

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