SHANGHAI, May 4 (SMM) - Nickel prices ran with some declines last week, and the price move was greatly affected by the macro data and news factors. Premiums of imported pure nickel grew apace to be flat from those of Jinchuan nickel. With the inflow of some imported spots to China later, the NORNICKEL nickel premiums plunged into a free fall, which still failed to stimulate the demand. On the contrary, Jinchuan nickel trades were better thanks to the stable premiums and supply as well as the downstream companies' restocking demand. Pure nickel consumption by the high-temperature alloy sector increased driven by a large number of domestic nuclear power and other projects launched in 2023. In addition, some enterprises that planned to maintain normal production during the Labour Day holiday mainly purchased Jinchuan nickel plates.
According to SMM research, most Jinchuan nickel will be used in the alloy sector in the first half of 2023. The pure nickel consumed by the civil alloy sector, such as corrosion-resistant alloys (used in containers, ship plates, etc.), will be the spot NORNICKEL nickel in most cases. Therefore, the slack demand for imported pure nickel last week was mainly caused by the poor civil alloy sector. The supply tightness of pure nickel has been eased greatly, and the long-term orders of imported spots for 2023 have been signed. Neither of them will strongly support the nickel prices.
