Cost of Indonesian Ferronickel Goes Up

Ferronickel: On September 7, the average price of SMM8-12% high nickel pig iron was 1,175 yuan/nickel point (ex-factory tax included), which was the same as the quotation on the previous working day. On the supply side, affected by cost factors, ferronickel production showed a downward trend in August, and current liquid spot prices tend to be tight. The domestic ferronickel market has a strong bullish sentiment. From the downstream demand side, the current stainless steel spot market continues to be weak, high stainless steel prices are difficult to transmit to the terminal, and the current raw material inventory of steel mills is still at a low level. The nickel ore quota incident has not yet been implemented and the domestic trade benchmark price premium is rising. The cost of local nickel pig iron in Indonesia is gradually strengthening, and the downward space for ferronickel prices is expected to be limited.

Stainless steel: September 7, according to SMM research, the spot price of stainless steel today was weak. The price was temporarily stable in the morning. A steel mill in East China still maintained price limit sales. Today's futures fell slightly due to the impact of macro news and then recovered slightly, to 304 in the afternoon. Affected by the market situation, the spot price of stainless steel has been reduced by 50-100 yuan/ton. This week, social inventories of 300 series cold-rolled steel have accumulated in Xi'an and Fujian, while hot-rolled steel has been destocked slightly. The intraday transactions are relatively average, and the transmission of demand to the terminal is relatively slow. It is expected that the spot price of stainless steel will fluctuate in the short term. In the morning of that day, the price of 304 cold rolled steel in Wuxi area was 15650-15950 yuan/ton. The price of 304 hot rolled steel in Wuxi area is 15050-15150 yuan/ton. The price of 316L cold rolled steel in Wuxi area is 26,700-28,300 yuan/ton. The price of 201J1 cold rolled steel in Wuxi area is 9150-9300 yuan/ton. The price of 430 cold rolled steel in Wuxi area is 8600-8650 yuan/ton. SHFE10: The contract price of 30-minute SS2310 is 15,870 yuan/ton, and the spot premium of Wuxi stainless steel is -50-250 yuan/ton. (Spot trimming = raw edge + 170 yuan/ton).

Written by SMM Nickel Research, if you have any questions about the nickel market, please don't hesitate to talk with me Fancyli@smm.cn