Macro disturbance to market sentiment, nickel prices fluctuated at a low level in November. According to the monitoring of nickel prices by Shengyi Society, as of November 28th, spot nickel prices were reported at 128300 yuan/ton, with a monthly increase of 3.4% and a decrease of 2.31% compared to the beginning of the year.
| Gamma-PGA (gamma polyglutamic acid) |
Macroscopically, the US presidential election has disrupted market sentiment, the US dollar index has strengthened, and nickel prices are under pressure. The Russia-Ukraine conflict escalated, and geopolitical factors stirred the market trend. The domestic stock policy continues to show effectiveness, the incremental policy is effectively implemented, and the policy combination effect is constantly released. The trend of China’s economic recovery and improvement is steadily strengthening, which provides positive support for nickel prices. But the new US government may impose high tariffs on China, and the market is concerned that China’s metal demand sentiment has not decreased, which will affect the fluctuation of nickel prices.
Supply side: Domestic policies are favorable, nickel prices are at a low level this year, and there is a significant destocking of nickel in Shanghai. As of November 28th, Shanghai nickel inventory was 27251 tons, a decrease of 64 tons during the month; LME nickel inventory continued, with 159966 tons in LME nickel inventory on November 28th, an increase of 13146 tons for the month.
In terms of demand, the demand for alloys such as military and shipbuilding is still acceptable, and they are being purchased at low prices. We are taking on urgent needs. Stainless steel saw a slight increase followed by a significant decline in November. As of the end of November, the spot price of stainless steel was 12335.71 yuan/ton, a decrease of 2.76% from 12685.71 yuan/ton at the beginning of the month and a year-on-year decrease of 2.32%. The traditional off-season is approaching, with weak demand for stainless steel in November. As the weather gradually cools down, outdoor projects in some areas have been suspended, and overall procurement has slowed down, resulting in a decrease in order volume.
Market forecast: Inventory pressure and price resistance still exist, demand is buying at low prices, macro market sentiment is disturbed, and it is expected that nickel prices will fluctuate in the short term.
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