Nickel Ore Prices Remain Rangebound on Firm Costs and Poor Downstream Demand

SHANGHAI, Feb 20 (SMM) - Nickel ore prices remained rangebound last week. Last Friday, the average price of Ni 1.5% ore was $72/wmt on a CIF basis, flat from the previous Friday. On the demand side, NPI prices kept dropping, lowering the NPI plants' profit margins, which limited the purchase prices of nickel ore. The overall output of NPI was stable, and the NPI factories still held some in-plant inventory of raw materials. Hence the nickel ore demand was relatively limited. The bid price offered by mines in the Philippines remained high during the rainy season. Traded price of Ni 1.3% fell slightly to about $44-45/wmt. Ocean freight rose somewhat. The overall cost of nickel ore still stood high, and the traders may suffer losses. Mines still held their prices firm. Downstream markets can hardly pick up in the short term, thus the nickel ore prices will be in a stalemate amid the game between buyers and sellers. If the NPI prices fall further in the future, the mines may cut their quotes. Ni 1.5% ore prices are expected to move between $70-75/wmt on a CIF basis in the short term.