Selected SMM Weekly Report: Nickel Short term Fundamentals Have Not Weakened, Gap Cover Above Needs Stronger Expected Stimulus

This week, nickel prices have shown a weak overall trend after a heavy drop last week, and have remained relatively low in volatility, indicating a significant lack of upward momentum. The reason for this is still the lack of confidence in the funds to go long, and many of the trapped funds choose to leave at high prices. Therefore, there is great pressure on the gap in the upper market. To break through, stronger fundamental stimulation is needed. We will pay attention to the changes in LME nickel bean inventory and the production progress of overseas wet process projects in the future. Nickel fundamentals: The overall consumption of pure nickel market remained stable this week, with low-priced downstream on-demand purchases and a decrease in stocking enthusiasm compared to the previous week. The spot market for battery grade nickel sulfate is still tight, but due to the deep decline in nickel prices, the spot price of battery grade nickel sulfate may follow suit in the near future. However, based on the current performance of terminal consumption, nickel sulfate will still maintain a high premium for nickel beans. Objectively speaking, the fundamentals are not bad. The main contract price for Shanghai nickel is expected to operate between 118000 and 126000 yuan/ton. Lunni is expected to operate at $15700 to $16500 per ton.

[Source to be retained for reprinting - Shanghai Nonferrous Network] [SMM Weekly Selected] Nickel short-term fundamentals have not weakened, and the gap above needs to be filled with stronger expectations to stimulate