Analysis Of Nickel Price Trend On March 8, 2022
Western sanctions against Russia's invasion of Ukraine have raised concerns about metal supplies. As the world's third-largest steel producer may reduce supply, strong demand from stainless steel and batteries, as well as reduced inventories, make metal bulls more optimistic. Since April last year, nickel inventory in LME registered warehouses has decreased by nearly 70% to 83328 tons.
Nickel is mainly used in the production of stainless steel and other alloys and can be found in food preparation equipment, mobile phones, medical equipment, transport, buildings, power generation. The biggest producers of nickel are Indonesia, the Philippines, Russia, New Caledonia, Australia, Canada, Brazil, China and Cuba. Nickel futures are available for trading in The London Metal Exchange (LME).
Zhou Weigang, a researcher at Jinrui futures, believes that there are three main reasons for the strong upward trend of nickel prices: first, the sanctions imposed by European and American economies on Russia under the conflict between Russia and Ukraine have led to the poor foreign logistics of Russia, causing concerns about the supply of energy and some commodities; Second, the dominant inventory of nickel metal is low (Lun nickel breaks 80000 tons) and the warehouse receipt concentration is high. Under the strong demand of downstream stainless steel and new energy, the contradiction of short-term resource shortage intensifies; Third, the sharp rise in energy prices gives support to metal costs; Therefore, under the resonance of multiple factors such as supply and demand and cost, the crazy influx of long funds and the long stop loss were hit, and the price rose smoothly.
Nickel is mainly used in the production of stainless steel and other alloys and can be found in food preparation equipment, mobile phones, medical equipment, transport, buildings, power generation. The biggest producers of nickel are Indonesia, the Philippines, Russia, New Caledonia, Australia, Canada, Brazil, China and Cuba. Nickel futures are available for trading in The London Metal Exchange (LME).
Nickel Price
On March 8, 2022, the price of steel reached US $48201 per ton, which is the highest price near 15 years.Future of Nickel
Citigroup analyst Max Layton believes that the price risk of the whole metal market will be upward in the next month. He believes that there is a shortage of metals produced in Russia and Ukraine. The United States and European allies explored the idea of banning the import of Russian oil, which also made the metal market nervous and promoted the overall rise of the market.Zhou Weigang, a researcher at Jinrui futures, believes that there are three main reasons for the strong upward trend of nickel prices: first, the sanctions imposed by European and American economies on Russia under the conflict between Russia and Ukraine have led to the poor foreign logistics of Russia, causing concerns about the supply of energy and some commodities; Second, the dominant inventory of nickel metal is low (Lun nickel breaks 80000 tons) and the warehouse receipt concentration is high. Under the strong demand of downstream stainless steel and new energy, the contradiction of short-term resource shortage intensifies; Third, the sharp rise in energy prices gives support to metal costs; Therefore, under the resonance of multiple factors such as supply and demand and cost, the crazy influx of long funds and the long stop loss were hit, and the price rose smoothly.
