The weakness of the stainless steel market makes the rebound of nickel fuures weak

On November 9^th the LME's nickel futures has fell more than 3 % on the last Thursday. The LME nickel future’s prices, which have risen sharply as a result of the hype surrounding the demand for electric vehicles have calmed down and the prices have been revised downward since hitting more than two years last week. Some traders said that the correction was began after a 10% rise in nickel prices during last week's London session.

Data from the National Bureau of Statistics showed that China's inflation data in October slightly exceeded expectations. The CPI has rose to the second highest level of the year which was driven by seasonal factors and non-food prices. The PPI was driven by higher raw materials which has rose more than expected and remained unchanged from last month. According to a survey released on last Wednesday, the price of industrial metals has rose sharply which has drivien by the electric car development boom and the governance of China air pollution promote, but it also shows the possibility of a price correction on the next year.

On tha last Thursday, the LME nickel was opened at the high prices of at $12,685/ tonne again. Due to the sluggish Chinese steel market, the Qingshan Group has slashed the price of stainless steel futures in December. As a result, the price of LME nickel was dropped to a range of between $12300 and $12,400 a tonne. The dollar index has rebounded after entering Europe and the United States times and the price of the nickel has fell to $12,190 / ton and ending at $12,285 / ton.

On the other hand, the opening quotation of the main force of Shanghai nickel’s 1801 contract was 98680 yuan/ton. After the opening the Shanghai nickel was quickly lowered to 97940 yuan/ton but after that the price of Shanghai nickel was volatile and it has hit a high of 99430 yuan/ton and finally ended up at 9,9140 yuan per ton.

Because of the domestic stainless steel market orders and the nickel was dragged down by the inner disc , the Shanghai nickel’s main contract of 1801 range in price is expected to from 98500 to 100000 yuan/ton and the spot prices of nickel is in the 98500 to 100100 yuan/ton.