1、 Trend analysis
According to the nickel price monitoring of the business community, the nickel price rose first and then fell this week. The spot nickel price was 131700 yuan / ton, down 1.37% from 133533.33 yuan / ton at the beginning of the week, down 2.78% from the beginning of the year, up 28.2% year on year. At the beginning of this week, Shanghai nickel mainly opened at 131380 points, then the price rose and fell, closing at 131350 points at the deadline on Friday, with a weekly decline of 0.73%. Lunni closed at US $17910 by Friday’s deadline, down 0.08%.
Downstream stainless steel
According to the stainless steel price monitoring of the business club, the price of stainless steel rose slightly this week. The quotation of spot stainless steel was 131700 yuan / ton, down 1.37% compared with 133533.33 yuan / ton at the beginning of the week, down 2.78% compared with the beginning of the year, up 28.2% year on year.
2、 Market analysis
At the beginning of the week, the US dollar index was weak and nickel prices were relatively strong. Towards the weekend, the US dollar was stronger, and worries about the Fed’s reduction of support intensified, and metal prices were under pressure as a whole. In terms of fundamentals, domestic nickel mines on the supply side are tight, and there is interference in the supply side in the near future. Due to the breakdown of labor negotiations, Vale suspended the operation of nickel mines in Sudbury, Canada. Due to the shortage of power in China, some ferronickel plants shut down for maintenance, and NPI prices rose slightly, but the pressure on the far end of nickel supply side is relatively high. The price of stainless steel in the lower reaches is relatively strong. Due to the shortage of power in southern China, the production of stainless steel is affected. Last week, it was said that three narrow strip steel plants in Guangxi stopped operation due to power failure. Many enterprises in Guangdong received the power restriction notice. Guangdong is one of the main production areas of stainless steel. The above situation will certainly affect the short-term production of stainless steel. Supported by the growth rate of new energy vehicle consumption, nickel sulfate consumption improved. Stainless steel inventory decreased and consumption performed well.
To sum up, the price of stainless steel is strong due to tight power supply restriction, which supports the nickel price. However, in the off-season of demand in June, the nickel price maintains a weak trend, which is mainly affected by macro sentiment.
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