According to the nickel price monitoring of SunSirs, on the 2nd, the average nickel spot market price was 166,683.33 RMB/ton, down 3.16% from the previous trading day and up 12.08% year-on-year.
The price of nickel has fluctuated in a weak trend recently. Expectations of rate hikes boosted the dollar, with London nickel closing down more than 4 percent overnight. The slowdown in the global economic rhythm led to a sharp drop in metal demand. In August, power outages and overhauls, and steel mill output declined, and the weak supply and demand dragged down nickel prices. Domestic nickel production was at a historical high, and there were many inventory resources.
From the perspective of downstream stainless steel, the downstream pessimism picked up, seasonal consumption may have improved, and the demand for replenishment improved. On August 30, Inner Mongolia issued a notice on the cancellation of the preferential electricity price policy, which was implemented from September 1. After the implementation, the electricity price in Eastern Mongolia may rise by 0.02 RMB/kWh to around 0.43-0.45 RMB/kWh. In 2022, the output of nickel pig iron and nickel metal from the Inner Mongolia ferronickel plant will account for about 4% of the country's total, and the impact may be limited.
With loose supply and weak demand, nickel prices remain volatile widely in the short term.
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