Market Inquiries Pick up as Spot Nickel Prices Fall

SHANGHAI, Feb 8 (SMM) - On the supply side, SHFE nickel rebounded in early trading yesterday. The spot prices dropped slightly, and the intraday inquiries picked up. However, according to SMM research, supply of NORNICKEL nickel in the market tightened. The problem of a mismatch between the supply and demand of stainless steel still exists, and the profits of NPI can hardly grow. It is expected that the game between NPI and stainless steel sectors will continue. On the demand side, according to SMM survey, the prices of #316L hot-rolled coils offered by Tsingshan were lower than the current market quotation, but the demand from the industrial sector is gradually released. Recently, the transactions of #316L hot-rolled coils have been relatively good, and the prices have gradually returned to rationality. Some alloy manufacturers completed the restocking amid the falling nickel prices in the past few days. To sum up, the supply of pure nickel was tightened, and downstream demand weakened. SMM believes that the nickel prices will move rangebound.