Price trend

According to the nickel price monitoring of SunSirs, on the 18th, the average nickel spot market price was 181,966.67 RMB/ton, down 2.77% from the previous trading day and up 22.84% year-on-year.

Analysis review

The stronger dollar put pressure on the nickel, and the trend of London nickel fell the next week and closed down 2.56%.With the resurgence of the domestic epidemic, the market liquidity has weakened, the supply of nickel has turned to a surplus pattern, and the enthusiasm for downstream procurement is not good. Data on Friday showed that credit data from China, the world's top metal consumer, dropped significantly in July, and new bank loans fell more than expected, putting metal prices under pressure. In addition, the strengthening of the US dollar exchange rate also put pressure on metal prices. It was previously rumored that the reserve would be purchased, but it is expected that the nickel reserve this time will be small and have little impact.

In terms of fundamentals, the overall nickel industry chain is currently weak, and the supply side has poor profits due to excess supply. In August, domestic ferronickel production is expected to continue to decline, domestic pure nickel spot premiums expand slightly, and import profits narrow. On the demand side, it is initially expected that the production schedule of stainless steel 200 and 400 series will continue to decline in August, and the 300 series will rebound slightly from the previous month, but it is still lower than the same period last year, and the power outage in East China in August may continue to affect stainless steel production.

Market outlook

Nickel prices are greatly affected by macro factors, and the fundamentals are generally weak. It is expected that the trend will still fluctuate widely in the short term.

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