Nickel Sulphate Prices Remain Stable, Strong Sentiment to Stand Firm on Quotes Awaiting Increase [SMM Nickel Morning Meeting Summary]

2.13Nickel Morning Meeting Summary

Refined Nickel:

Spot Premiums/Discounts: The mainstream spot premium quotation range for Jinchuan Nickel No. 1 was 2,000-2,100 yuan/mt, with an average premium of 2,050 yuan/mt, down by 150 yuan compared to the previous trading day. The quotation range for Russian nickel premiums/discounts was -200 to 100 yuan/mt, with an average premium of -50 yuan/mt, up by 50 yuan compared to the previous trading day.

Futures: In the morning, nickel prices largely opened lower, with a decline of 1.15%, reaching a low of 123,840 yuan.

Spot Premiums/Discounts: The premium for Jinchuan brand nickel slightly decreased, influenced by overseas factors such as the continued amplification of macro sentiment fluctuations due to the uncertainty of Trump’s policies and the persistent surplus pressure in the nickel fundamentals. Spot premiums/discounts for other nickel plate brands in the spot market showed relatively small changes overall.

Today, nickel prices opened lower within a range. The premium for Jinchuan brand nickel showed slight loosening. Spot premiums/discounts for other nickel plate brands remained largely stable this month. Attention is on the progress of the Philippines' proposed nickel ore export ban. In the short term, nickel prices may fluctuate with sentiment, with the most-traded contract expected to operate within the range of 120,000-130,000 yuan.

Price Spread With Nickel Sulphate: Today, nickel briquette prices were 123,850-124,250 yuan/mt, with an average price of 124,050 yuan/mt, down by 2,125 yuan/mt compared to the previous trading day's spot price. Nickel sulphate remains at a discount to refined nickel.

Nickel Sulphate:

On February 12, the SMM battery-grade nickel sulphate index price was 26,598 yuan/mt, with a quotation range of 26,400-27,080 yuan/mt, and the average price remained unchanged from the previous day.

Cost Side: LME nickel prices slightly pulled back today to $15,440, weakening cost support slightly. The downward trend on the cost side has not yet affected market quotations. Demand Side: Some precursor plants have completed stockpiling for February, with some manufacturers' inventories meeting immediate needs, though procurement demand still exists. Supply Side: Some nickel salt smelters have not yet resumed operations, while others that have resumed have started quoting and negotiating orders. Current quotations from salt plants are largely stable compared to last week, with spot order transactions remaining sluggish. Comprehensive Analysis: Based on the sentiment to stand firm on quotes due to cost losses at salt plants and the still-existing procurement demand, prices are expected to strengthen slightly in the near term.

Nickel Pig Iron:

On February 12, the SMM 8-12% high-grade NPI average price was 956.5 yuan/mtu (ex-factory, tax included), up by 1.5 yuan/mtu compared to the previous working day. Supply Side: Domestically, Philippine nickel ore prices remained largely stable, while domestic smelters continued to operate at a loss, with production slightly recovering after seasonal maintenance. In Indonesia, overall production decreased in February, coupled with adjustments in production in a major region, leading to a slight decline in total output. Demand Side: The stainless steel market has not fully recovered after the Chinese New Year holiday, with poor stainless steel shipment performance and sluggish raw material procurement sentiment from steel mills. Some traders hold strong expectations for the market outlook, with active inquiries and a relatively heated market sentiment. With the trend of tightening available market resources, high-grade NPI prices are expected to fluctuate upward in the short term.

Stainless Steel:

On February 12, stainless steel electronic trading prices remained at low levels, while spot prices for different steel grades showed varying trends. The price for 201 fell, 304 remained largely stable, and 430 slightly increased. These differences were mainly due to varying inventory pressures and response measures. In Wuxi, 304 cold-rolled prices were quoted at 12,950-13,350 yuan/mt, and 304 HRC prices were quoted at 12,450-12,600 yuan/mt. 316L cold-rolled prices were quoted at 23,800-24,200 yuan/mt. 201J1 cold-rolled prices were quoted at 7,700-7,800 yuan/mt. 430 cold-rolled prices were quoted at 7,300-7,450 yuan/mt. At 10:30 a.m., the SHFE SS2503 contract price was 13,150 yuan/mt, with Wuxi stainless steel spot premiums/discounts at -30 to 370 yuan/mt (spot trimmed edge = rough edge + 170 yuan/mt).