According to the monitoring of nickel prices by Shengyi Society, nickel prices continued to decline this week (9.1-9.9). As of September 9th, spot nickel was reported at 123200 yuan/ton, with a weekly decline of 6.43% and a year-on-year decline of 25.97%, hitting a new low since May 2021.

Macroscopically, due to mixed employment data in the United States, the strengthening of the US dollar exchange rate, and the slowdown in manufacturing activity in China, the world’s top metal consumer, concerns about global economic growth prospects have intensified. This has dragged down the volatility of most varieties in the London metal market and exacerbated the decline in nickel prices.

On the supply side, the domestic supply situation remains relatively loose, and market inventories continue to increase. The trend pressure has not yet eased. As of September 9th, Shanghai nickel inventories were 23778 tons, an increase of 1166 tons from the end of August; LME nickel inventory is 121656 tons, with a weekly increase of 2340 tons.

On the demand side, the replenishment heat of Jinjiu is not high, and the price of stainless steel is running weakly at a low level. On September 9th, the benchmark price of stainless steel plates in Shengyi Society was 12628.57 yuan/ton, a decrease of 1.01% from the beginning of the month. The demand for alloys in military and shipping industries is still acceptable, and customers have a strong need to continue.

Market forecast: The macroeconomic sentiment has intensified the decline in nickel prices, putting pressure on global inventories. It is expected that nickel prices will consolidate weakly in the short term.