Price trend

This week (12.1-12.6), the nickel price market was running weakly. According to the monitoring of nickel prices by SunSirs, as of December 6th, spot nickel was quoted at 12,730 RMB/ton, with a weekly decline of 0.78% and a year-on-year decline of 1.59%.

Analysis review

Macroscopically, although there were signs of recovery in China's manufacturing activities, the selling pressure caused by the strengthening of the US dollar had dragged down nickel prices. Additionally, concerns about China's economic growth and the prospect of US tariffs had been offset by the weakness of the US dollar, resulting in a rise in nickel prices, which affects price range fluctuations in the domestic market.

On the supply side, Shanghai nickel had strong destocking and more inventory has been stored, while London nickel has weak destocking and overall inventory is under pressure. As of December 6th, the inventory of Shanghai nickel warehouse receipts was 29,579 tons, an increase of 2,406 tons during the week; On December 6th, LME nickel inventory was 165.264 tons, an increase of 5.298 tons for the week.

On the demand side, the reduction in stainless steel production did not meet expectations or continued to operate weakly. As of December 6th, the reference price for stainless steel in SunSirs was 13,267.50 RMB/ton, a decrease of 0.66% from the beginning of the week. Steel mills still maintained high production capacity, social inventory remained relatively high, and there was no significant improvement on the demand side.

Market outlook

Demand was pressing for replenishment at low prices, inventory was under pressure, and price increases were hindered. We need to pay attention to macroeconomic fluctuations. It is expected that nickel prices will fluctuate in the short term.

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