SHANGHAI, Feb 14 (SMM) - In January, the average monthly price of Ni 1.5% ore was $71.5/wmt on a CIF basis, flat from the previous month, which was caused by the approaching CNY holiday in the month. Nickel ore demand from NPI plants which carried some in-plant inventories of NPI was poor. At the same time, the NPI prices remained rangebound, limiting the profit margins of NPI factories. On the supply side, nickel ore shipments from the Philippines were hindered by the rainy season in the country, and the ore prices were quoted high.However, ocean freight fluctuated downward. Therefore, the total CIF cost of nickel ore did not fluctuate significantly, and the price hike of nickel ore has not been transmitted to the downstream sectors.
In February, NPI output is expected to grow MoM, indicating that the NPI plants will release some demand for nickel ore. Large downstream companies carried enough nickel ore inventories, and they generally offered lower purchase prices of nickel ore. At the same time, the market was relatively conservative in its expectations for the subsequent recovery of downstream consumption. The buyers and sellers wrestled over the prices, hence the nickel ore prices changed little. Some NPI factories restocked nickel ore on rigid demand, and the traded prices were relatively high owing to the supply tightness of nickel ore. Ni 1.5% ore prices are expected to edge higher to around $71-77/wmt on a CIF basis.
