The upstream price sentiment is heavier, and the downstream wait-and-see nickel pig iron transaction is under pressure [Nickel Pig Iron Daily Review]

SMM, May 22, On May 22, the average price of SMM8-12% high-nickel pig iron was 977.5 yuan/nickel point (ex-factory tax included), which was the same as the previous working day. On the supply side, it will take time for Indonesia to approve nickel ore in May, the shortage of raw materials in Indonesian smelters has not improved, and the output of Indonesian nickel pig iron smelters is weak. Domestically, some smelters have resumed production after maintenance, but due to the impact of nickel pig iron production costs, the total amount of resumption of production is limited, and domestic smelters still maintain a low operating rate. On the demand side, this week has entered the second half of May, and the long-term raw material procurement demand of steel mills may be released in the near future. To sum up, the current nickel pig iron price is driven by the tight price of raw materials and circulation, and the price acceptance of steel mills is relatively limited, but due to the release of demand near the raw material procurement cycle, it is expected that the price of ferronickel will be stable and strong in the short term.