SunSirs: Nickel Prices Surged as Fed Hikes Slowed
August 02 2022 08:35:28 SunSirs (John)
Price trend
According to the nickel price monitoring of SunSirs, on the 1st, the average nickel spot market price was 182,983.33 RMB/ton, an increase of 5.14% over the previous trading day and a year-on-year increase of 30.74%.
Analysis review
On August 1, spot nickel prices rose sharply. The U.S. Federal Reserve may slow down the pace of interest rate hikes, the U.S. dollar hit a new three-week low, London nickel surged 9.86% overnight, and nickel spot futures both rose.
In terms of fundamentals, the apparent consumption of nickel has rebounded from the previous period, and the domestic electrolytic nickel supply is expected to be loose, but the current domestic pure nickel inventory is at an absolute low level, which forms a certain support for the price.
In addition, the recovery of overseas nickel mines has eased the tight cost situation, and Indonesian ferronickel, wet-processed intermediates and high nickel matte have gradually flowed into the country, and the pressure on the supply side is still unabated. However, due to the implementation of production reduction in downstream stainless steel, the high inventory has experienced a certain reduction, but the overall demand is still lower than expected.
Market outlook
On the whole, the supply and demand of nickel tends to be loose, and the nickel price may be under pressure again after the rebound. It is expected that the overall trend of nickel will fluctuate in a wide range.
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- 2024-02-21 SunSirs: Nickel Morning Newspaper on February 20th
- 2024-02-01 SunSirs: The nickel price in January mainly fluctuated widely
- 2024-01-16 SunSirs: Nickel Prices Had Slightly Increased This Week (January 8-12)
- 2024-01-04 SunSirs: On January 3rd, Nickel Prices Slightly Decreased
