Nickel Price Moves in Range Bound

SHFE nickel moved in range bound. Market quoted against SHFE 1912 nickel contract, and the physical premiums expanded. Overall trading was low as many market players chose to stand on side lines. Quotes for nickel briquette were at a discount of 7,300-6,300 yuan/mt against SHFE 1912 nickel contract.

Spot nickel was offered at 133,800-135,500 yuan/mt on November 8, down 575 yuan/mt. Jinchuan nickel was quoted at a premium of 10,950 yuan/mt over Wuxi 1911 nickel contract and at a premium of 4,200 yuan/mt over SHFE 1911 nickel. Russian nickel was offered at a premium of 9,250 yuan/mt over Wuxi 1911 nickel contract and at a premium of 2,500 yuan/mt over SHFE 1912 nickel.

Both upstream and downstream prices performed weak. NPI plants held cautious attitude. They may choose to stand on sidelines in the short run as they had plenty stocks on hand. The falling nickel price weighed on the stainless steel price. The spot quotes declined, and short sentiment strengthened. Some cargo holders were eager to sell and lowered price. However, actual trading was thin due to low demand.

In the NPI market, offers for Ni 8-12% NPI were at 1,150-1,180 yuan/mtu, and 1,140-1,170 yuan/mtu for Ni 7-10% NPI, unchanged from previous trading day.

The progress of China-US trade talks boosted base metals. Indonesia said that they allowed some nickel ore exporters to resume shipment, which repressed nickel price. SHMET nickel analyst estimated that nickel price would face downward pressure, and the continue to move in range bound.