SunSirs: Nickel Prices Rebounded from Low Levels on July 19

https://www.chemnet.com   Jul 20,2022

　　According to the nickel price monitoring of SunSirs, on the 19th, the average nickel market price was 175,116.67 RMB/ton, an increase of 5.13% from the previous trading day and a year-on-year increase of 21.86%.

　　Analysis review

　　Recently, spot nickel has rebounded at a low level. The main reason for the rebound is that last week's data showed that the U.S. economy may not enter a recession soon. In addition, Fed officials still cooled expectations for interest rate hikes despite better data. In addition, the surge in crude oil led to a general rise in commodities, and London nickel closed up 3.60% overnight.

　　In terms of supply and demand, nickel inventories in London continued to fall last week. Since the end of May, inventories have fallen. The latest inventory level is 62.532 tons, which has continuously refreshed multi-year lows. Although domestic production and overseas influx of goods have doubled, the cost of ferronickel plants is high, and the price is relatively strong. The downstream stainless steel inventories have continuously dropped to the normal range in recent years, indicating that demand is picking up. In terms of output, the domestic stainless steel output fell month-on-month due to the impact of losses in the previous period.

　　Market outlook

　　The macro aspect drives the price of nickel to rise, but the fundamentals are general, and it is expected that the price of nickel will mainly fluctuate at a low level in the short term.

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