Price trend

The nickel price trend continued to decline this week (10.19-10.25), with weak demand and continued oversupply of nickel. According to the monitoring of nickel prices by SunSirs, as of October 25th, spot nickel was quoted at 127,266 RMB/ton, with a weekly decline of 1.62%.

Analysis review

Macro side: After China launched its most aggressive economic stimulus plan since 2020, the trend of base metals rebounded briefly, but then fluctuated and fell back as demand concerns continued. The uncertainty of the US presidential election had also raised concerns about the demand outlook, with nickel prices continuing to fluctuate weakly.

On the supply side, foreign inventory was still showing an upward trend, price pressure was still present, and the number of domestic goods that met delivery quality had decreased. As of October 25th, Shanghai nickel inventory was 28,008 tons, a decrease of 897 tons from last Friday; On October 25th, LME nickel inventory was 135,522 tons, an increase of 1,152 tons from last Friday.

In terms of demand: The overall market situation was average, with some first-time buyers purchasing in moderation at low prices. As there was already a certain amount of reserve inventory in the early stage, the actual increase in shipment quantity was limited. Some merchants had expressed that downstream customers would be cautious. Boosted by favorable economic policies, on October 25th, the benchmark price of stainless steel plates in SunSirs was 12,778.57 RMB/ton, an increase of 1.59% compared to the beginning of this month. However, the inventory pressure had not improved, and the company continued to self regulate and control production, operating weakly.

Market outlook

T The trend of strong upstream and downstream supply and weak demand continues, and overall confidence is still insufficient. The market expects macroeconomic positive news to boost it. It is expected that nickel prices will be weakly consolidated in the short term.

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