The market sentiment picks up, and the price of ferronickel is expected to be stable and strong in the short term

On April 19, the average price of SMM8-12% high-nickel pig iron was 947.5 yuan/nickel point (ex-factory tax included), up 5 yuan/nickel point from the previous working day. On the supply side, in April, due to the high price of nickel ore, the nickel ore inventory of Indonesian ferronickel smelters maintained production, and the output was not significantly reduced, and the cost support was relatively strong. Domestically, due to the impact of profit inversion, some small and medium-sized enterprises have begun to suspend production, and the resumption time is still wait-and-see. Affected by the Russian nickel sanctions over the weekend, pure nickel and stainless steel disks fluctuated upward, but there is still a cycle for transmission to the entity, and the upstream quotations of ferronickel have risen due to the emotional impact. On the demand side, the current stainless steel price rebound upward revision cost inversion slightly repaired, in April still maintain a high schedule, raw material procurement is still in demand, today's stainless steel mills have been traded, and the transaction price continues to rise. To sum up, the rebound of stainless steel spot prices and the strong cost support of ferronickel are expected to be stable and strong in the short term.