The fundamentals have not returned to Shanghai Nickel or will remain volatile in five trading days [SMM Review]

SMM4 March 18: Shanghai Nickel maintained last week's rising momentum, as of today, the fifth consecutive trading day floating red. At around 14:20, it rose 1.93 per cent, or 9 per cent in five trading days.

As of 14:23 on April 18, the trend of Shanghai nickel:

"check the metal market.

Spot market

The average spot price of SMM1# electrolytic nickel is 237150 yuan / ton today, up 1.28% from last Friday.

According to SMM research, the trend of scarcity of goods and poor transportation in Shanghai remains unchanged, the price of non-local inventory is generally high, and the freight transported to Shanghai continues to rise due to the epidemic, so electrolytic nickel water is resolutely strong when the disk is high.

In terms of nickel beans, the supply of goods in the market remains scarce, and the current quotations of traders are less, mainly due to the weak procurement expectations of downstream manufacturers.

"View the spot historical price of SMM nickel products

According to SMM analysis, last week Lun nickel prices in the range of $32400 / ton to $33300 / ton and liquidity has not been improved, mainly because the current Lunni price is still high, LME-denominated raw material contract implementation is more difficult, resulting in low willingness to maintain value, and some customers think that even if LME prices return to normal levels of confidence will be affected, it is expected that Lunni disk activity is difficult to return to normal.

In addition, the supply of nickel sulfate is relatively tight, and the shortage of raw material supply has been transferred to nickel sulfate. at present, the substantial release of high ice nickel is the key point to affect the new energy supply and alleviate the shortage of nickel bean supply. However, the current output of high matte has not met expectations.

Shanghai nickel showed an upward trend last week, but the whole pure nickel continued to maintain the situation of weak supply and demand. The weak demand put pressure on the nickel price, and the tight supply gave strong support to the nickel price.

To sum up, nickel prices have not yet returned to fundamentals, pure nickel supply and demand has not been improved, SMM expects Shanghai nickel goods to maintain a volatile trend next week.

The Seventh China International New Energy Conference and China International Nickel, Cobalt and Lithium Summit Forum in 2022

New ecology of sustainable and high development

The double carbon goal is a strategic choice for China's sustainable development in the new era. General Secretary Xi Jinping pointed out that promoting the development of new and clean energy should be put in a more prominent position, and we should actively and orderly develop light energy, silicon energy, hydrogen energy and renewable energy. It is necessary to promote the deep integration of energy technology with modern information, new materials and advanced manufacturing technology, and explore new modes of energy production and consumption. It is necessary to speed up the development of wind energy, solar energy, biomass energy, geothermal energy, ocean energy, hydrogen energy and other new energy with large-scale efficiency, coordinate hydropower development and ecological protection, and actively develop nuclear power in a safe and orderly manner.

In this context, in order to slow down global warming, countries have stopped selling fuel vehicles since 2025. The global output of new energy vehicles is expected to exceed 18 million in 2025. It has become a current historical trend to reduce the consumption of traditional energy and develop alternative new energy.

Driven by the double carbon policy, the whole industrial chain of new energy has entered the Pentium era. The following contradictions have gradually emerged, such as the mismatch between supply and demand between industrial chains, and under the triple pressure of demand contraction, supply shock and weakening expectations, how to fully tap the potential of economic structural growth?

"deficiency" highlights whether it will affect the coordinated development of the industrial chain? At this time of both opportunities and challenges, SMM sincerely invites you to attend the "2022 (Seventh) China International New Energy Conference" to discuss the future development of the new energy industry with the conference representatives in the five major sectors of new energy battery, photovoltaic, geothermal, hydrogen energy and energy storage.

Recommended reading:

"Futures prices fluctuate greatly. For enterprise settlement, please refer to SMM spot quotation!

"the scarcity of pure nickel and the rise in freight rates are resolutely firm [SMM Nickel spot afternoon Review]

"the fluidity of pure nickel has not been improved. The shortage of downstream raw materials affects supply [minutes of SMM Morning meeting].