Nickel Series:

The supply of nickel ore remains tight, making its prices more likely to rise than fall. As of June 14, 2024, the Mysteel CIF price for laterite nickel ore stayed the same, with 0.9% low aluminum ore at $37 per wet ton, 1.3% nickel ore at $33 per wet ton, 1.5% nickel ore at $47-48 per wet ton, and 1.8% nickel ore at $71-72 per wet ton. During the week, nickel prices fluctuated downwards, and the market was mainly in a wait-and-see mood. Domestic ferronickel enterprises saw their profit margins narrow, and they were cautious in negotiating nickel ore prices due to cost inversion. Philippine mines, due to cost and shipment timing factors, temporarily do not have much room for concessions. In Indonesia, the supply of nickel ore remains tight. In addition, as of the 12th, the number of nickel ore ships from the Philippines to Indonesia in June has reached 16, totaling 646,500 wet tons, exceeding the number of ships in May. In the short term, nickel ore prices are more likely to rise than fall.

Ferronickel:

Market sentiment was poor during the week, and the support for ferronickel prices weakened. On June 14, the domestic ex-factory price of high-nickel iron was temporarily stable at 985-990 yuan/nickel; the domestic factory price was temporarily stable at 990-1000 yuan/nickel; the tax-inclusive bottom price of high-nickel iron in Indonesia was temporarily stable at 985-995 yuan/nickel, and the FOB price of Indonesian ferronickel was temporarily stable at $118/nickel. During the week, the trading atmosphere in the ferronickel market turned weak, and the market sentiment, coupled with the pressure of terminal demand, led to a weakening support for ferronickel prices. Under the game of supply and demand, the negotiation range has slightly loosened, and the latest transaction price has dropped to 980-985 yuan/nickel (factory price including tax). On the cost side, the ore side considers its own cost and has limited room for concessions, maintaining a firm offer. On the supply side, the current iron factory's offer remains firm, mostly around 1020 yuan/nickel (ex-factory price including tax). On the demand side, the stainless steel plate continues to fluctuate, and the spot market transaction is general. At present, steel mills still have a price-pressing mentality for the purchase of ferronickel, and inquiries are mostly around the average price +10. The game of supply and demand price difference, the subsequent still needs to pay attention to the latest transaction dynamics of the market and the situation of the return of Indonesian ferronickel.

Refined Nickel:

The nickel price continues to fall, and the premium for refined nickel has increased. Last week, the mainstream premium of Jinchuan nickel to the Shanghai nickel 2407 was quoted at 2400-3200 yuan/ton, an increase of 800 yuan/ton from the previous week; the real-time ex-factory price of Jinchuan nickel in the Shanghai area was calculated in real time at 2740-3050 yuan/ton, down 5500 yuan/ton from the previous week. The mainstream premium of Russian nickel to the Shanghai nickel 2407 was quoted at -100 to 0 yuan/ton, unchanged from the previous week. The mainstream premium of nickel beans to the Shanghai nickel 2407 was quoted at -2300 to -1300 yuan/ton, an increase of 1000 yuan/ton from the previous week. The mainstream premium of Japanese Sumitomo nickel to the Shanghai nickel 2407 was quoted at 3200-3300 yuan/ton, unchanged from the previous week. The mainstream premium of Norwegian slab to the Shanghai nickel 2407 was quoted at 3400-5000 yuan/ton, an increase of 1600 yuan/ton from the previous week. During the week, nickel prices continued to fall, and downstream purchases were still active on the first day after the Dragon Boat Festival, but there was an expansion of market spot traders' differences on whether nickel prices could continue to fall, and the spot premium was quite scattered. Subsequently, affected by macro factors, nickel prices continued to fall, and the spot premium for various brands of refined nickel gradually increased. Jinchuan resources are relatively stable, but as the spot premium continues to rise, transactions gradually become weak. Brands such as Huayou's electro-nickel have risen to the premium level, and warehouse resources have begun to enter the market, and the supply pattern of electro-nickel has been slightly relieved recently. The import loss of Norwegian and Sumitomo resources is still large, and imports are mainly based on the agreement quantity, with the overall supply being tight, and the spot gradually consumed during the week, and the spot premium has risen sharply. Nickel beans have made a slight profit from self-dissolving to produce sulfuric acid nickel, and the downstream market is actively looking for goods, but under the import loss, the enthusiasm of traders for imports is not high.