In terms of spot, the ex-factory price of Jinchuan increased slightly in July. The nickel futures continued to fluctuate and adjust at a high level above the 110,000 mark. At the end of the month, the downstream purchasing intention was weak, and the atmosphere in the spot market appeared extremely dull. There is little change in the premium and discount quotations. The quotation of nickel available to Russia will be priced at around 300 yuan/ton for the Shanghai Nickel 09 contract, and a small amount of non-payable Russia nickel will be affixed 400 yuan/ton for the Shanghai Nickel 09 contract; Most of the contracts are quoted at a premium of RMB 300/ton. The profit and loss window for nickel plate imports continued to close. Regarding nickel beans, traders are willing to replenish the inventory, but the quotations on the market are less. It is expected that the discount will be around RMB 1,000/ton for the 09 contract.
In terms of stainless steel, during the epidemic, the operating rate of the stainless steel industry dropped significantly year-on-year, and the operating rate of the stainless steel industry in April and May has gradually returned to a normal level. Under the pressure of high inventories and low profits, the stable production of steel mills in the second half of the year will depend on the continued low prices of raw materials. With sufficient raw materials for nickel pig iron, it is more likely that steel mills will maintain normal operations.
Fundamentally, in the nickel ore market, the domestic nickel ore tightness pattern has not yet been completely relieved, and the price of nickel ore is firm. Regarding ferronickel, raw material costs support prices, and domestic production cuts are limited, and demand for nickel ore remains unchanged. The demand side is in the off-season, but in order to stabilize the market share and maintain production. The fundamentals have not changed much as a whole, supported by nickel mines as a whole, with limited space below, more macroeconomics, and more shocks.
