SHANGHAI, Sep 29 (SMM) - The finalised composite PMI for the alloy sector stood at 50.02% in September, staying in the expansion range. Among them, the production index was 50.30, the purchase index was 50.26, the new order index was 50.30, and the supplier delivery time index was 50. Due to the Fed’s interest rate meeting in September, nickel prices were seriously affected by the macro front and fell after rising. Affected by the high nickel prices in the early September, the alloy industry was worried about further price increase. However, since the result of interest rate hike meeting was in line with expectations, nickel prices fell again, and spot transactions also picked up. According to the SMM research, at present, the demand for pure nickel did not change significantly in September as enterprises mainly purchased as needed, and only a few orders for civil use decreased.
The initial reading of composite PMI for the alloy sector in October was 50.05. Affected by the rising SHFE nickel prices, nickel briquette prices are higher than nickel sulphate, hence the demand for nickel briquette from nickel sulphate sector is unlikely to pick up. In this scenario, the pure nickel inventory will not decline significantly. The current prices of pure nickel were still high, but the current fundamentals may not able to provide sufficient support for the high nickel prices. Therefore, the raw material procurement and order situation may improve slightly in September.
