Source: Jintou.com
According to the entrepreneurial company’s nickel price monitor, nickel prices have increased significantly this week. As of November 11, the spot price for nickel was 209,033.33 yuan / ton, an increase of 7.52% since the beginning of the week and a year-over-year increase of 42.75%.
According to the business community’s weekly change chart, nickel prices have risen by 4, 7 have fallen by 1 over the past 12 weeks, and nickel prices have recently strengthened.
As of November 10, the LME nickel inventory was 50,382 tons, down 30 tons from the previous day. Over the past month, LME nickel stocks fell by 1,644 tons, a decline of 3.16%.
On the macro front, US consumer prices (CPI) rose less than expected last month. The official inflation rate fell to 7.7%, down from 8.2% in August and below economists’ forecast of 7.9%. Top Fed officials advocate a slower pace of rate hikes. A lower spike in US interest rates will help metals as higher rates dampen economic activity and cause the dollar to rise. According to data released by the National Bureau of Statistics of China, demand in some sectors increased in October and the national PPI rose slightly from month to month.
In terms of supply and demand, nickel ore was impacted by the rainy season in the Philippines and supply started to decline, nickel ore price remained stable, and cost support was strong. The downstream stainless steel production schedule has increased year on year, the demand side has started to weaken, stainless steel stocks have built up and purchasing has decreased. Stocks at home and abroad remain at historically low levels. Furthermore, the LME’s concerns about sanctions on Russian nickel resources have not abated. The nickel supply chain is currently in a situation of weak supply and demand as a whole.
In summary, market expectations that the Fed could slow interest rate hikes continued to rise, the US dollar index fell sharply, and the pressure on non-ferrous metals continued to ease. As November gradually enters the off-season, stainless steel can gradually return to weak functioning, and the increase in the production schedule has also increased the digestion pressure, and the industrial chain can gradually enter negative feedback, which is also become the main limiting factor of nickel prices. At present, macro factors control the overseas market, the domestic market is passively followed, and the fundamental expectation cannot be effectively improved: the nickel price is expected to maintain a broad swing trend in the short term.
(Article Source: Business Club)
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