Nickel prices will continue to fall and remain low
2017-11-20 16:29 Foshan Gangtuo Import and Export Co. Ltd
As downstream demand growth was slowed and the supply of nickel mines has increased, the LME nickel has dropped for $270 / ton and it was quoted at $11,385 a tonne overnight.
In terms of spot nickel, the quotation of jinchuan nickel is up for 650 yuan/ton and the factory price is 93,200 yuan/ton. The quotation is lower than that of yesterday's quotation by 1300 yuan/ton but it was higher than the market price. The spot nickel price on Friday was continued to be lower, with the downstream stainless steel factory and the alloy and electroplating enterprises purchasing was actively and the overall market’s trading activity was active.
On the other hand, Indonesia's export quota for nickel mines will be continue to increase. But as the Philippines are enters the rainy season, the future of nickel supply will gradually decline. At last week, the domestic port nickel stocks was continued to decline, adding that the domestic nickel stocks was remained low and the production of nickel-iron would be less than expected, so the possibility of a weaker nickel price in the short term is more likely.