SunSirs: Nickel Slightly Fell 1.98% (November 4-8)

1. Price Trend

According to data from SunSirs, nickel prices fell sharply this week and then it had a narrow range of shocks. At the beginning of the week, the nickel price was 137,200RMB/t, but at the end of the week, it fell to 134,483.33RMB/t, decreasing 1.98% slightly, 50.25% higher compared with the beginning of the year, 32.93% higher year on year.

2. Market Trend

This week, Indonesia's ban on mining policy came into effect, having a significant impact on nickel enterprises. It is difficult for the Philippines to meet the import demand of China's nickel mines, and nickel mines will face a shortage. However, the positive factors have been fully realized in the price, nickel price has increased by 50% compared with the beginning of the year. The short-term uplink is insufficient.

The NI index was 131,920 at the beginning of this week. Since then prices have been weak, it closed at 127,900 on Friday, decreasing 3.27% on a weekly basis. At the beginning of this week, NID of LME3 was 16,735USD, closing at 16,220USD at the end of Friday, decreasing 3.28% on a weekly basis.

In terms of downstream, the recent spot price of 304 stainless steel continued to decline, showing a weak performance. Although the 300 series stainless steel inventory is at a historical high level, unless there is a serious loss, the output may remain at a high level, and at present, some of the steel plant inventory begins to shift to the middle and lower streams. If there is no improvement in later demand, the supply and demand pattern of 300 series stainless steel will continue to weaken.

In terms of market, nickel transaction was flat, the supply of goods was normal, and the downstream delivery was limited.

3. Prospects for the Future Market

According to nickel analysts of SunSirs, there is no major changes in nickel fundamentals this week, the supply is tight, the downstream stainless steel inventory is high, the demand is weak, and nickel price is expected to remain volatile.

Related listed companies: Jilin Jien Nickel (600432), Chengdu Huaze Cobalt&nickel (000693).

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