Pure Nickel Price Drop Slowing amid Hindered Release of NPI Output

SHANGHAI, Oct 18 (SMM) - SHFE nicked posted an inverted V-shaped move in September. On the evening of September 8, the US Fed said that the Fed's task is to bring down US inflation to 2% target. The market had stronger expectations for extended rate hike path or soft landing in light of a robust labour market and rising wages, which were bearish for nickel prices. Later at 2:00 am, September 22, the Federal Reserve announced a 75 basis point interest rate hike, which was in line with market expectations, and nickel price fell subsequently. On September 29, the news came that that "LME is likely to ban Russian metals", a clear bull for nickel price. Therefore, looking back at the September market, nickel prices were generally manipulated by the macro front. In China, the demand for special alloy steel did not shrink despite high nickel prices owing to its extensive applications and special use, and the alloy industry always has rigid demand for pure nickel. Secondly, although the stainless steel industry consumes less pure nickel, the resumption of production in September and October and the strong expectation of production ramp-up will also promote the demand for pure nickel. From the perspective of inventory, the current global supply of pure nickel is still tight, and the constantly low inventory in China and abroad has provided some support for nickel price. In addition, Indonesia high-grade nickel matte production release in the fourth quarter has fallen short. Therefore, it is highly likely that pure nickel prices will slow down its reduction during the rest of 2022.