Risk Appetite Cools, Nickel Prices Fluctuate [Institutional Commentary]

On Wednesday, nickel prices fluctuated. The SMM1# nickel was quoted at 126,925 yuan/mt, up by 225. Imported nickel was quoted at 125,875 yuan/mt, up by 225. Jinchuan nickel was quoted at 127,875 yuan/mt, up by 125. Electrodeposited nickel was quoted at 125,725 mt, up by 125. The premium for imported nickel was 250 yuan/mt, up by 100. The premium for Jinchuan nickel was 2,250 yuan/mt, unchanged. The total SMM inventory was 44,000 mt, an increase of 652 mt from the previous period. Trump announced that he would significantly reduce tariffs on China but would not cancel them.

The Sino-US trade friction showed signs of improvement, and market risk appetite cooled. The US dollar index may continue its rebound path. However, the current expectations of Indonesian policies still dominate nickel prices, and macro pressure is limited. The industry has seen no significant fluctuations. With the easing of Sino-US trade relations, stainless steel consumption may see marginal improvement, but the current inventory pressure on stainless steel is high, and the actual driving force for demand is limited. Nickel prices continue to fluctuate.