Nickel Ore Prices are Stable as Wait-and-See Sentiment Fills the Market

SHANGHAI, Feb 6 (SMM) - Nickel ore trading was slack post CNY holiday, and the rising NPI prices aroused a strong wait-and-see sentiment in the market. Last Friday, the average price of Ni 1.5% ore was $71.5/wmt on a CIF basis, flat from the price before the CNY holiday. Ore supply from the Philippines was limited during the rainy season. The ore prices in the north were high and firm, with the latest price of Ni 1.3% ore of around $46.5/wmt. The ocean freight dropped during the CNY holiday. Last week, the ocean freight bounced back with the rise in crude oil prices and daily rents. On the demand side, the output of NPI and stainless steel did not grow significantly in January. Besides, the large factories restocked sufficient raw materials in the early stage, leading to poor demand for nickel ore. But spot nickel ore supply was scarce in the market, and the prices moved rangebound since the downstream companies is cautiously optimistic about the market. It is expected that the short-term prices of Ni 1.5% ore will be $70-74/wmt.