Nickel Morning Meeting Minutes July 20

Macro, by the second quarter economic recovery is limited continuation of the impact of the weak trend, nickel prices shocked downward in the morning.

Fundamentals, supply side, the current market Russian nickel spot supply is tight, Jinchuan nickel plate supply loose expectations.

Demand side, due to nickel prices are still in high shock, the actual transaction price is still high, downstream purchasing willingness is weak, and part of the downstream near the end of the month need to August orders for procurement.

In summary, the macro news negative non-ferrous plate, but the basic support for the current nickel price is limited, is expected to follow the nickel price or will show a shock downward trend.

Pure nickel: July 19, Jinchuan ascending water reported 8200-8500 yuan / tonne, the average price of 8350 yuan / tonne, the price of 300 yuan / tonne down from the previous trading day. Russian nickel premium quoted 2900-3000 yuan / tonne, the average price of 2950 yuan / tonne, compared with the previous trading day up 150 yuan / tonne.

According to SMM research, today's Russian nickel premium continues to premium, mainly because the market can circulate less Russian nickel spot, some traders are reluctant to sell, on the contrary, the market supply of Jinchuan nickel plate is sufficient, so the Jinchuan nickel plate premium continues to decline today.

Nickel briquettes price 166000-167,500 yuan / tonne, an increase of 1900 yuan / tonne, nickel briquettes price than nickel sulphate continued to inverted, spot transactions were weak. In addition, according to SMM research, July 19 for the 07 contract last day of delivery, after the completion of delivery part of the warehouse receipts will flow back to the spot market, will alleviate the current market supply of Russian nickel tight situation, and the recent supply of Jinchuan nickel plate presents loose.
In summary, it is expected that the subsequent spot premium or will continue to weaken.

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