This week (12.1-12.6), the nickel price market is running weakly. According to the monitoring of nickel prices by Shengyi Society, as of December 6th, spot nickel was reported at 12730 yuan/ton, with a weekly decline of 0.78% and a year-on-year decline of 1.59%.
Macroscopically, although there are signs of recovery in China’s manufacturing activities, the selling pressure caused by the strengthening of the US dollar has dragged down nickel prices. Additionally, concerns about China’s economic growth and the prospect of US tariffs have been offset by the weakness of the US dollar, resulting in a rise in nickel prices. Affects price range fluctuations in the domestic market.
On the supply side, Shanghai nickel has strong destocking and more inventory has been stored, while London nickel has weak destocking and overall inventory is under pressure. As of December 6th, the inventory of Shanghai nickel warehouse receipts was 29579 tons, an increase of 2406 tons during the week; On December 6th, LME nickel inventory was 165264 tons, an increase of 5298 tons for the week.
On the demand side, the reduction in stainless steel production did not meet expectations or continued to operate weakly. As of December 6th, the reference price for stainless steel in Shengyi Society was 13267.50 yuan/ton, a decrease of 0.66% from the beginning of the week. Steel mills still maintain high production capacity, social inventory remains relatively high, and there is no significant improvement on the demand side.
Market forecast: Demand for essential goods is expected to be replenished at low prices, inventory is under pressure, and price increases are hindered. Attention should be paid to macroeconomic fluctuations, and it is expected that nickel prices will fluctuate in the short term.
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