SunSirs: Nickel Prices Continued to Decline This Week

Price trend

This week (12.14-12.20), the nickel market experienced a downward expansion. According to the monitoring of nickel prices by SunSirs, as of December 20th, spot nickel was quoted at 124,608 RMB/ton, with a weekly decline of 4.62%.

Analysis review

Macroscopically, the Federal Reserve announced a 25 basis point reduction in the target range of the federal funds rate to between 4.25% and 4.50%, and expects the rate cut to narrow to 50 basis points by 2025. The scheduled interest rate cut is in line with expectations, and the pace of interest rate cuts will be slowed down next year, causing the US dollar to rise to a two-year high and bearish on the metal market.

On the supply side: According to the World Bureau of Metal Statistics (WBMS) report, there was a cumulative surplus of 114,100 tons of refined nickel in 2024. Shanghai nickel and London nickel inventories were under pressure, with a significant decrease in inventory during the week. As of December 20th, the inventory of Shanghai nickel warehouse receipts was 29,227 tons, a decrease of 1,337 tons during the week; The qualified quantity for delivery was 35,390 tons, with an increase of 706 tons within the week. On December 20th, LME nickel inventory was 161,436 tons, a decrease of 3,072 tons during the week.

On the demand side: The stainless steel market continued to weaken, with low willingness to reduce production and high output. Downstream demand for low-priced goods was being replenished as needed, and the market trading atmosphere was sluggish. As of December 20th, the reference price for stainless steel in SunSirs was 13,130 RMB/ton, a decrease of 1.68% from the beginning of the month. The demand for electroplating and alloys remained stable.

Market outlook

Demand was weak, inventory was under pressure, and nickel prices were hindered from rising. The pattern of strong supply and weak demand continued. Attention is paid to macroeconomic policies, and it is expected that nickel prices will fluctuate in the short term.

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