SunSirs: Nickel Price Dropped 2.37% due to the Fall of Black Series

SunSirs: Oct 15

According to the nickel price monitoring of SunSirs, the spot price on Oct 15 was 134,016.67RMB/t, 2.37% lower than that of yesterday (137,266.67 RMB/t), 49.73% higher than the beginning of the year, and 31.51% higher year on year. Now nickel prices mainly swing slightly at high.

Indonesia's early ban has raised concerns, merchants have rushed to buy

Indonesia will ban mining in January 2020 in advance, and the rainy season is in the Philippines. A large number of domestic nickel-bearing pig iron plants and traders have rushed to buy, and the raw material inventory of some plants even increases to a volume of 8-10 months.　

LME nickel inventory continues to decline

Indonesia's early ban on mining has raised concerns, since the beginning of October, the inventory of NID has been declining, with an average daily decline of more than 4,000 tons and a cumulative decline of nearly 40%. However, the market has reacted coldly to this.

Downstream stainless steel prices are still strong

According to the price monitoring of SunSirs, on Oct 15, the daily average price of 304/2B stainless steel plate 1.0 * 1219 * 2438 (tolerance 0.91) was 14,628.57RMB/t (tax included), slightly increasing by 0.24% compared with 14,592.86RMB/t (tax included) of the previous day, increasing by 8.16% compared with the beginning of the year, and decreasing by 0.21% year on year.

To sum up, a nickel analyst of SunSirs believes that the sharp drop in nickel inventory is mainly due to the large storing caused by the concerns on next year’s supply, rather than the the actual using situation. Although the prices of stainless steel are still firm now, mainly due to the cost increase caused by emergencies, its inventory is still high and the demand is not good. In addition, nickel rose too high in the early stage, today, affected by the opening of black series, nickel prices also fell slightly. The fundamentals of weak supply and demand have existed for a long time, and nickel prices are expected to continue to swing slight at high.

Relevant listed companies: Huayou Cobalt Industry, Zhongjin Lingnan, GEM, Hailiang Shares.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.