SunSirs: Strong Supply and Weak Demand Led to a Weak Decline in Nickel Price on March 2

Price trend

According to the nickel price monitoring of SunSirs, on the 2nd, the average price of nickel spot market was 194,816.67 RMB/ton, down 2.88% from the previous trading day and up 6.33% year on year.

Analysis review

The Federal Reserve continues to released hawkish signals that interest rates might need to be further raised, and the expectation of macro interest rate increases dragged down market sentiment; Under the background of the restart of overseas windows and the release of electrodeposited nickel, the shortage of pure nickel supply had been alleviated. In January 2023, the national electrolytic nickel output totaled 16400 tons, up 37.24% year on year. At the same time, LME restarted the nickel trading during the Asian session. Several media reported that the general manager of Huayou Cobalt would go to LME to further solve the shortage of pure nickel deliverables, which eased the market's expectation of the shortage of deliverables and opened up space for the further decline of nickel prices in the future. Downstream demand wstill sluggish, and recent spot transactions are less than expected. Under the combination of increased supply and weak demand, the social inventory of nickel rose slightly in February, suppressing the nickel price.

Market outlook

According to the methane chloride data analyst of the SunSirs, the cost of dichloromethane still has support. In addition, the peak season of downstream refrigerant is approaching. It is expected that the market of dichloromethane will be high and firm in the later period.

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