The Transaction Activity of Nickel Improves

As for refined nickel, the afternoon SHFE nickel increased slightly. Spot market volume was thin today. Since downstream plants completed stocking up before the Qingming festival and the nickel price increased slightly, downstream plants remained cautious. The transactions were mainly made by traders, with part of traders’ transaction being active. In short term, nickel price is likely to fluctuate and investors are likely to stay on the sideline. As for NPI, SHMET NPI (8-12%) was quoted at 870-890 yuan/mtu, and NPI (7-10%) at 860-880 yuan/mtu, the same as the previous day. The overall market of NPI was thin. As the downstream demand continued to be weak, spot trading was blocked and the market inquiry was inactive. Although the number of transactions before the Qingming festival increased, inventory appeared a small decline. However, the overall inventory was still on the high level. At the same time, as the output continued to increase in the later period, and the overall demand was low, the supply and demand side was still in an unbalanced state, and trend pressure still exists, with many market participants maintaining a cautious view.

Overall, expectations of an improvement in risk appetite have increased recently as major economies have reached and exceeded the peak of the coronavirus curve and the lingering impact of the outbreak has eased. But in the longer term, with the global economy still weak and investors still expecting prices to increase, taking a cautious view is recommended in the short term.