SMM Nickel Market Morning Comment Fully (Apr 9)

Overnight, the most-traded SHFE nickel contract opened at 135,870 yuan/mt, and closed at 136,620 yuan/mt, up 3,170 yuan/mt compared with the last trading day. Trading volume fell by 60,071 lots to 189,887 lots, and open interest decreased by 2,407 lots to 90,380 lots. The most-traded SHFE nickel contract opened slightly lower, rebounded to the highest at 137,540 yuan/mt and then inched lower, with the final increase of 2.2%.

Nickel: On April 8th, Jinchuan quoted a premium of 2,600-2,800 yuan/mt, with an average of 2,700 yuan/mt, a decrease of 50 yuan/mt compared to the previous trading day. Russian nickel quoted a premium of -500 to -200 yuan/mt, with an average of -350 yuan/mt, unchanged from the previous trading day. SHFE Nickel prices were strong in the morning, but spot market transactions were relatively weak due to nickel price influences. The price of nickel beans was 132,500-133,500 yuan/mt, an increase of 2,350 yuan/mt from the previous trading day. Today nickel sulfate price is 5,636 yuan/mt higher than nickel beans price.

Nickel sulfate: On April 8th, the SMM battery-grade nickel sulfate index price was 30,436 yuan/mt, down 114 yuan/mt from yesterday, with a price range of 30,300-30,700 yuan/mt, down 100 yuan/mt on average from the previous yesterday. Current trading activity has weakened, with a lower trading center. Downstream is gradually having a high acceptance on high-priced nickel sulfate, and the overall trading price range is shifting downwards. A leading company released some nickel sulfate, which may gradually alleviate the tight spot situation in the market, but there is still downward risk in nickel sulfate prices in the future.

Ferronickel: On April 8th, the average price of SMM 8-12% NPI was 930 yuan/mtu (factory tax included), unchanged from the previous working day. From the supply side, in April, due to the high operation of nickel ore pricesPure nickel: On April 8th, Jinchuan quoted a premium of 2,600-2,800 yuan/mt, with an average of 2,700 yuan/mt, a decrease of 50 yuan/mt compared to the previous trading day. Russian nickel quoted a premium of -500 to -200 yuan/mt, with an average of -350 yuan/mt, unchanged from the previous trading day. Nickel prices were strong in the morning, but spot market transactions were relatively weak due to nickel price influences. The price of nickel beans was 132,500-133,500 yuan/mt, an increase of 2,350 yuan/mt from the previous trading day, with a price difference of approximately 5,636 yuan/mt compared to nickel sulfate. (Nickel sulfate price is 5,636 yuan/mt higher than nickel beans price).

Nickel sulfate: On April 8th, the SMM battery-grade nickel sulfate index price was 30,436 yuan/mt, down 114 yuan/mt from the previous working day, with a price range of 30,300-30,700 yuan/mt, down 100 yuan/mt on average from the previous working day. Current trading activity has weakened, with a lower trading center. Downstream acceptance of high-priced nickel sulfate is gradually decreasing, and the overall trading price range is shifting downwards. A leading company released some nickel sulfate, which may gradually alleviate the tight spot situation in the market, but there is still downward risk in nickel sulfate prices in the future.

Ferronickel: On April 8th, the average price of SMM 8-12% high nickel pig iron was 930 yuan/nickel point (factory tax included), unchanged from the previous working day. From the supply side, in April, nickel ore prices sustained high, but Indonesian ferronickel smelters did not reduce production significantly. Affected by the inverted profit margin, some small and medium-sized domestic enterprises began to shut down, and the resumption time is still under observation. Yesterday is the first trading day after the qingming holiday. Stainless steel prices rose, but the upstream and downstream of ferronickel are still in a stalemate, and prices remain stable. From the demand side, there were a small amount of transactions at steel mills after the holiday, with lower prices and relatively light transactions. Currently, there is still a strong wait-and-see sentiment between upstream and downstream, and transactions are still dominated by the buyers. Overall, the current stainless steel terminal demand remains weak, leading to an accumulation trend on the supply side, and the current ferronickel prices are expected to be weak.

Stainless steel: On April 8th, according to SMM research, the spot prices of stainless steel rose. Tsingshan and Delong opened with Tsingshan May futures up by 100 yuan/mt, and Delong cold and hot rolling futures up by about 200 yuan/mt. Tsingshan required agents in Wuxi and Foshan to maintain the limit price, forbidding sales under market price, and an additional 100 yuan/limit for thin materials is required. Tsingshan and Delong has fewer batches for May futures, and the market hoards cold rolling resources. Inquiry transactions are more active, and boosted by the upward trend, the prices of 2,300 series stainless steel spot rose. On the same day, 304 cold-rolled prices in Wuxi were reported at 13,500-13,800 yuan/mt, 304 hot-rolled prices in Wuxi were reported at 13,000-13,100 yuan/mt. 316L cold-rolled prices in Wuxi were reported at 24,000-24,300 yuan/mt. 201J1 cold-rolled prices in Wuxi were reported at 8,750-8,850 yuan/mt. 430 cold-rolled prices in Wuxi were reported at 8,100-8,200 yuan/mt. At 10:30 am, the SHFE SS2405 contract price was 13,675 yuan/mt, with a premium of 45-295 yuan/mt for stainless steel spot in Wuxi. (Spot deburred edge = Burr edge + 170 yuan/mt).