SHFE Nickel Ends Seven-Day Winning Streak as Poor Fundamentals Dominate after Bullish Impact from the Philippines Mulling over Tax on Nickel Ore Exports Fades

Published: Feb 3, 2023 11:00

Source: SMM

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SHANGHAI, Feb 3 (SMM) - After climbing for seven trading days in a row, SHFE nickel fell back yesterday February 2, once losing 3.68%, as poor fundamentals dominated after bullish impact from the Philippines mulling over tax on nickel ore exports has faded.

Similarly, SMM #1 refined nickel fell 2,600 yuan/mt or 1.12% from a day earlier to 228,600 yuan/mt on February 2.

In terms of NPI, supply was ample as NPI production continued unabated during the Chinese New Year. Demand optimism encouraged some NPI plants to hold offers firm. SMM Ni8-12% high-grade NPI averaged 1,370 yuan/mtu (ex-factory, tax included) on February 2, flat from the previous day. NPI prices may hold steady in the near term.

On the demand side, some alloy plants restocked after the CNY holiday, but high nickel prices deterred them from buying aggressively.

Considering the massive accumulation of social inventory and expectations for refined nickel production increase, nickel prices will be vulnerable to further corrections in the short term.

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