SMM Nickel Market Morning Comment (Oct 28)

Last week, refined nickel prices fluctuated between 125,000-130,000 yuan/mt, showing a slight correction compared to the previous period. There were no significant structural changes compared to the previous week. Nickel ore prices softened, exerting some pressure on nickel prices. Across the entire industry chain, demand from the two major sectors, stainless steel and ternary cathode precursors, remained weak. For ternary cathode precursors, the demand for nickel sulphate was weak, and the market was sluggish. Coupled with a slight decline in raw material prices for nickel sulphate, nickel sulphate prices trended downward during the week. On the stainless steel side, due to inventory buildup of finished products, downstream procurement of raw materials was limited, leading to a slight decline in NPI prices during the week. On the upstream raw material side, MHP and high-grade nickel matte projects were in the ramp-up phase, with supply steadily increasing. The overall primary nickel market remained in surplus, with the supply surplus expected to gradually widen. Therefore, SMM believes that there is still upward resistance to nickel prices. Nickel prices are expected to range between 122,000-128,000 yuan/mt this week.