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Nickel Prices Slightly Decline on September 11th; Spot Transactions Remain Weak, Shanghai Nickel Sees Narrow Fluctuations

Shanghai nickel (2310) experienced a slight decline today, with the main September 2310 contract opening at 167,890 CNY per ton, reaching a high of 168,220 CNY per ton during trading, and settling at 166,840 CNY per ton, down by 2,740 CNY or 1.62%. The main contract for Shanghai nickel (2310) saw a total of 143,842 lots traded.

On September 11th, the CCMN Yangtze River Composite 1# nickel price was reported at 165,850-168,750 CNY per ton, with an average of 167,300 CNY per ton, down by 900 CNY. The Yangtze River spot price for 1# nickel was quoted at 165,700-168,900 CNY per ton, with an average of 167,300 CNY per ton, down by 800 CNY. In Guangdong, the spot nickel price was reported at 169,250-169,650 CNY per ton, with an average of 169,450 CNY per ton, down by 950 CNY.

On the macroeconomic front, the Chinese yuan strengthened both onshore and offshore on Monday, and the US dollar has been volatile today. There are signs of a rebound in the domestic industrial sector, and metals in the overseas market saw a rebound in the afternoon. One of the reasons for the rise on the London Metal Exchange (LME) is the stabilization of the Chinese economy, which has raised expectations for an improvement in metal demand. China is one of the world’s largest consumers of metals, so its economic situation has a significant impact on the metal market.

Nickel sulfate prices have stabilized and risen, and the supply and demand situation for pure nickel in China may continue to be loose. New production capacity for pure nickel continues to expand, and LME nickel inventories are slowly accumulating. Spot transactions are mainly driven by actual demand. The situation with Indonesian nickel ore and the peak season demand are still in a verification phase. It is expected that there is a significant probability of a weak rebound in Shanghai nickel prices in the short term.

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