1. Trend analysis

According to nickel price monitoring by SunSirs, on the 20th, spot nickel fell slightly, and is now reported at 104,050 yuan/ton, down 2.35% from the previous day, down 8.51% from the beginning of the year, and down 12.17% year-on-year. The main force of Shanghai nickel opened at 106,390 yuan, and then the price first fell and then rose, closing at 105,610 yuan, a decrease of 0.67%. The shadow of COVID-19 in the United States was overwhelmed, and concerns about the economic slowdown in the United States rose. The next week, Lun Nickel adjusted downwards and closed down 2.13%.

2. Market analysis

Domestic nickel stocks in Shanghai increased by 2,348 tons to 29,495 tons last week, an increase of nearly 8%, setting a new high in more than four months. The hidden inventory in East China increased by 197 tons to 13,005 tons. Last week, the Gansu smelter and the Jilin smelter had a certain amount of electrolytic nickel in Shanghai. Therefore, the hidden inventory in East China this week increased by 197 tons compared with last week. Guangdong Southern Reserve's inventory increased to 290 tons. Superimposed on the arrival of imported and domestic nickel plates, domestic social inventories increased by 5.97%. Coupled with poor domestic market demand, nickel prices are under pressure.

3. Outlook

Nickel inventories have increased significantly and domestic demand is weak. It is expected that nickel prices will fluctuate mainly in the short term.

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