Source: Jintou.com
According to the business association’s nickel price monitor, nickel prices rose sharply this week. As of November 11, the nickel spot price was 209,033.33 yuan / ton, an increase of 7.52% from the beginning of the week and a year-on-year increase of 42.75%.
According to the business community’s weekly change chart, in the last 12 weeks, nickel prices have risen 4, 7 have fallen 1, and nickel prices have recently strengthened.
As of 10 November, LME nickel inventory stood at 50,382 tonnes, down 30 tonnes from the previous day. In the past month, LME nickel inventories have fallen by 1,644 tonnes, a decrease of 3.16%.
On the macro front, US consumer prices (cpi) rose less than expected last month. The official inflation rate fell to 7.7%, down from 8.2% in August and below economists’ forecast of 7.9%. Top Fed officials support slower rate hikes. A lower peak in US interest rates will help metals as higher rates dampen economic activity and boost the dollar. According to data released by China’s National Bureau of Statistics, in October, demand increased in some industries, and the national PPI rose slightly month-on-month.
In terms of supply and demand, nickel ore was affected by the rainy season in the Philippines, and supply began to decline. The price of nickel ore was firm and cost support was strong. The downstream stainless steel production schedule increased year after year, the demand side began to weaken, the stainless steel inventory accumulated, and the purchase decreased. Inventories at home and abroad remain at historically low levels. In addition, the LME’s concerns about sanctions on Russian nickel resources have not subsided. The nickel industry chain is currently in a situation of weak supply and demand as a whole.
In summary, market expectation that the Fed might slow interest rate hikes continued to rise, the US dollar index fell sharply, and the pressure on non-ferrous metals continued to ease. As November gradually enters the off-season, stainless steel can gradually return to weak operation, and the increased production schedule has also increased the wear pressure, and the chain can industrial gradually enter negative feedback, which has also become the main factor limiting nickel prices. At present, macro factors control the foreign market, the domestic market is passively followed, and the basic expectation cannot be improved effectively. The nickel price is expected to maintain a wide fluctuation trend in the short term.
(Article source: Business Club)
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