Nickel Varieties:
Yesterday, the nickel price dropped from a high level and downstream inquiries increased. However, the overall transaction was still light, and downstream buying was insufficient. Recently, the warehouse receipts of Shanghai Nickel (141840, -1730.00, -1.20%) have continued to decline, and it is currently less than 3,000 tons, which is at an extremely low level in history. Yesterday, the prices of nickel ore and ferronickel continued to rise slightly, and refined nickel became a discount to high ferronickel.
Nickel view: Nickel’s own supply and demand are strong, the global refined nickel inventory has declined for 17 consecutive weeks, the LME nickel inventory continues to decline, the domestic refined nickel inventory is at a historical low, and the Shanghai nickel warehouse receipt is at a very low level after the listing, and the domestic inventory is low. The state has improved the elasticity of nickel prices. The current demand for nickel beans is strong, the output of stainless steel is still at a high level, and the consumption of refined nickel is relatively good. The shortage of supply has led to continuous destocking. The short-term nickel supply and demand are still performing well.
Nickel strategy: unilateral: neutral. Nickel supply and demand are relatively strong, but the price is relatively high, and the external atmosphere is relatively empty. It is recommended to deal with the idea of
Nickel focus points: the Federal Reserve’s monetary policy, the progress of the high ice nickel incident, the epidemic situation in the Philippines and Indonesia, the supply of large traditional nickel companies, and the policy of new energy vehicles.
304 Stainless Steel Varieties:
Mysteel data shows that this week, the social inventory of the mainstream 300 series stainless steel market across the country fell by 10 thousand tons to 415,800 tons, a decrease of 0.24%, of which cold rolled slightly increased, and hot rolled slightly decreased. Recently, the transaction price of high ferronickel hit a new high. Because the price of nickel ore remains high, ferronickel manufacturers are reluctant to sell, and the supply of ferronickel is tight, and the spot profit margin of 304 stainless steel is at a loss. Yesterday, stainless steel and nickel futures prices fell, stainless steel spot prices fell slightly, market confidence was insufficient, and spot transactions were light.
Stainless steel view: Stainless steel inventory remained stable this week, and overall it is still not ample. Raw material prices are still strong. 304 stainless steel spot profit margin is in a loss state. There are still expectations of stainless steel mills to limit production in the mid-line. 304 stainless steel fundamentals are still supportive. . However, the current domestic downstream consumption is weak, the traditional peak season demand has not yet started, and export demand has also fallen. The production restriction policy has not been strictly implemented. The output of 300 series stainless steel has remained high, the price upward momentum is insufficient, and the short-term external sentiment is pessimistic. Stainless steel futures Prices fluctuated weakly.
Stainless Steel Strategy: Neutral.
Stainless steel focus points: stainless steel plant production restrictions, stainless steel inventory, stainless steel consumption, China and Indonesia’s NPI, and the progress of new stainless steel production capacity.