SMM Morning Comment For Nickel Market (Feb 19)

SHANGHAI, Feb 19 (SMM) –Nickel prices fluctuated downward before the CNY holiday. The decline in nickel prices is mainly due to the gradual digestion of the positive macro sentiments in the early stage. The approval of mining quotas for nickel miens in Indonesia under RKAB is slow but picked up a little. The short-term nickel ore supply crunch has been alleviated to some extent. The hawkish speech after the Federal Reserve meeting affected market mood. From a fundamental perspective, the global pure nickel inventory accumulation trend remains unchanged despite the fact that pure nickel production increased in January. LME nickel inventory exceeded 70,000 mt, with the main increase coming from warehouses in Asia. Most downstream producers stocked up before the CNY holiday, and some have purchased enough raw materials for use after the holiday. Procurement will gradually resume at the end of the month. Nickel price is expected to swing on a soft note.