Excerpt from the SMM Nickel Industry Chain Weekly Report:
Recently the US election event affecting market fundamentals, because of the influence of the stainless steel metal futures price falls, nickel pig iron’s price is difficult to achieve, and present the weaker risk, weak industrial chain overall performance, combined with early and do more, and nickel production affect the mood of the cause or have been implemented, the recent market correction demand;However, on the whole, except for the unfavorable shipment of stainless steel and the increase of profit pressure, nickel procurement was depressed, other aspects performed reasonably, and further signs of decline need to be seen.On the macro side, the US election is in full swing. The US stock market has risen sharply recently, while the outside metal has risen generally. However, nickel is still in a wait-and-see mood, and the recent focus is on the impact of macro events such as the US election and the trend of the DOLLAR on nickel prices.It is expected that Shanghai nickel will be 115,000-118000 yuan/ton and Lun nickel will be 15200-15650 dollars/ton next week.
The uncertainty of macro events in Shanghai nickel this week, bulls push up confidence limited, nickel spot trading at the low atmosphere is fair.Jinchuan Nickel, due to the shortage of goods in Shanghai area, the premium of Shanghai nickel 12 contract has reached 5,800 yuan/ton as of Friday.However, the maintenance of the factory’s production equipment is nearly completed and normal production will resume soon.If the aftermarket nickel price rises, it is expected that jinchuan sheng shui continues to rise limited.Russian nickel, due to the recent two weeks almost no import warehousing, inventory has been low, so the price held firm.But at the same time, xinjiang Bofeng nickel and Jinchuan electrodeposit nickel market quotation is lower, consumption has increased, so the Russian nickel quotation is temporarily stopped near the level .