Nickel spot trend

According to the nickel price monitoring of the business association, the spot price of nickel on October 15 was 134016.67 yuan / ton, a slight decrease of 2.37% compared with 137266.67 yuan / ton on the previous trading day, an increase of 49.73% compared with the beginning of the year, and a year-on-year increase of 31.51%. Now nickel price is mainly high and weak.

Indonesia’s early ban on mining has raised concerns that businesses are scrambling for nickel

Indonesia will ban mining in January 2020 in advance, and then add the rainy season in the Philippines. A large number of domestic pig iron plants and traders rush to buy, and the raw material inventory of some plants even increases to 8-10 months.

LME nickel inventory continues to decline

Indonesia’s early ban on mining has raised concerns that since the beginning of October, the inventory of LUNI nickel has been declining, with an average daily decline of more than 4000 tons and a cumulative decline of nearly 40%. However, the market has reacted coldly to this.

Downstream stainless steel prices are firm

According to the price monitoring of business agency, as of October 15, the daily average price of 304 / 2B stainless steel plate 1.0 * 1219 * 2438 (tolerance 0.91) was 14628.57 yuan / ton (tax included), slightly increased by 0.24% compared with 14592.86 yuan / ton (tax included) the previous day, increased by 8.16% compared with the beginning of the year, and decreased by 0.21% year on year.

Stainless steel prices are firm due to Wuxi accident

Based on the demand for replenishment of downstream warehouses after the festival, some agents and traders in Wuxi responded that last Friday’s transaction was better than that before the festival; in Foshan, in mid October, the downstream goods were more optimistic than before, the release of demand increased, and businesses were mainly flexible in shipment. In addition, due to the recent accidents in Wuxi area, which led to a sharp rise in freight rates, and traffic jams leading to delays in the arrival of goods, the spot market generally raised prices.

To sum up, Liu Meili, nickel analyst of business association, believes that the sharp drop in nickel inventory is mainly due to the concern about the impact of large amount of inventory on next year’s nickel supply, rather than the actual use situation now. Although the price of stainless steel is firm now, mainly due to the cost increase caused by emergencies, its inventory is still high and the demand is not good. In addition, nickel rose too high in the early stage, and the market has been waiting to be digested. Today, affected by the opening of black series, nickel price also fell slightly. The fundamentals of weak supply and demand exist for a long time, and nickel price is expected to remain high and weak.