Nickel price stays weak in short term

Date 11/9/2018 5:06:19 PM Source: SHMET

SHANGHAI, Nov 9 (SHMET) – Spot nickel prices were offered at 97,400-106,600 yuan/mt on Friday November 9 with increase of 450 yuan/mt. Spot premium for Jinchuan nickel came to 9,500 yuan/mt compared with Wuxi 1811 contract, and 9,670 yuan/mt compared with SHFE nickel three-month contract. Russian nickel saw premium of 300 yuan/mt compared with Wuxi 1811 contract, and was at a premium of 470 yuan/mt over with SHFE nickel 1901 contract.

Spot nickel market was quiet over this week with downstream buyers eying bearish outlook and cautious sentiment prevailing. Trades flow among traders was basically stable and buyers need to start production kept stable orders.

On macro side, US dollars continued strengthening, and investors turned their attention to FED. In addition, China import and export growth rate both inched down in October with weaker demand, indicating impact of China-US trade tension showing up. Metal market was still under pressure. LME nickel saw larger drop.

Nickel inventory edged lower, keeping the nickel price from further drop. Some large importers continued importing with sustained profits. Besides, Jinchuan Nickel premium held high with tight resources.

NPI stood unchanged lately, while trades were insipid with sustained weak demand. Many manufacturers held their bearish outlook unchanged. Stainless steel offers were basically stable on November 9, except some cut in part regions of Jiangsu and Zhejiang provinces. Trades volume remained small with poor demand, suppressing long-term offers.

In summary, overall trades remained depressed with sustained weak price trend. As for that, there are positive opinions holding that stable SHFE nickel may get the market back on track.  

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