Nickel Prices to Bear Pressure from Economic Recession and Electrowinning Nickel Output Increase

SHANGHAI, Apr 17 (SMM) - The spread between the SHFE 2304 and 2305 nickel narrowed slightly last week. Most traders have included the spot NORNICKEL nickel in sources for warrant delivery, and no cleared spots flowed into China, resulting in the firm premiums of NORNICKEL nickel. As for the domestic pure nickel, according to SMM research, profit margins of electrowinning nickel companies that produced with nickel sulphate or MHP grew despite the increase in nickel prices, but these companies still did not change their original plan of delaying the production. In early April, 300-series stainless steel profits have improved somewhat. Orders received by the state-owned stainless steel mills were acceptable. Some mills even ramped up the production. Therefore, the overall output of 300-series stainless steel in April will grow. In addition, alloy manufacturers will increase production amid the better consumption in April, which will drive up pure nickel demand. The supply tightness and the improvement in demand beefed up nickel prices to a certain extent. However, the rate hikes have led to a slight economic recession, and the electrowinning nickel output is expected to increase, which may weigh on nickel prices.