1. Trend analysis

According to SunSirs nickel price monitoring, on June 3, spot nickel prices were 103,783.33 yuan/ton, up 0.84% ​​from the previous trading day, down 8.75% from the beginning of the year, and up 6.1% year-on-year.

2. Market analysis

The U.S. ISM manufacturing industry stabilized at a low level in May. The overnight London nickel closed up 2.22% and hit a high of nearly three months. Domestic favorable policies continue, and the prospects for industrial metal demand may improve, supporting nickel prices. In terms of nickel ore, New Calgary, the Philippines and Guatemala will play a role of substitution. The serious COVID-19 in the Philippines has led to a limited supply of nickel ore and the production of ferronickel may remain low. Indonesia's ferronickel production is in good condition and has not been affected by the pandemic. The inventory of nickel ore ports has declined, and the ore price has steadily strengthened. In terms of consumption, sales of new energy vehicles are declining, and subsidies are expected to continue to defuse industry shocks. The supply and demand of downstream stainless steel are weak, and short-term consumption is under pressure, suppressing the rebound space above nickel prices, but stainless steel production is expected to increase, and nickel prices will rebound below.

3. Outlook

Supply is tight, downstream consumption is weak, and nickel prices are expected to remain high and volatile.

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