SunSirs: Chinese Nickel Prices Rose Slightly by 1.84% on October 21

1. Trend analysis

According to SunSirs nickel price monitoring, nickel prices rose slightly on the 21st. The current price is 122,583.33 yuan/ton, a slight increase of 1.84% from the previous trading day, an increase of 7.78% from the beginning of the year, and a year-on-year decrease of 4.58%. The main force of Shanghai Nickel opened at 120,570 yuan. After the opening, the price moved strongly and closed at 121,730 yuan, an increase of 1.27%. LME March nickel closed at $16,110 at the time of writing, an increase of 0.37%.

2. Market analysis

The U.S. fiscal stimulus bill ushered in dawn and confidence in the commodity market reignited. Nickel nickel rebounded strongly overnight. The latest closing price was reported at US$16,050, an increase of US$400 or 2.56% from the previous trading day, a record high in nearly a year. The London Metal Exchange (LME) on the 20th reported 236,832 metric tons of nickel stocks, a decrease of 510 metric tons from the previous trading day. The overseas epidemic has not yet been effectively controlled. Due to the temporary closure of some mines due to the global epidemic, the agency expects that world nickel production will fall by 7.4% this year, and the supply of domestic nickel mines is still tight. In the near future, the largest domestic electric vehicle factory will be put into production, which may boost nickel demand. The downstream supply of stainless steel is sufficient, but overall expectations for the peak consumption season in September have fallen through. The construction of ferronickel in Indonesia is proceeding step by step, and there is a risk of increasing supply in the future.

3. Outlook

Nickel mines are still tight in the short-term. The largest domestic electric vehicle plant is about to start production, which is good for nickel prices. However, Indonesia's new steelmaking capacity is about to start production. The short-term fluctuations in nickel prices are expected to be dominant.

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