The monthly metal index (MMI) of stainless steel rose by 4.5%. This was due to the extended delivery period and limited domestic production capacity (a trend similar to steel prices), and the base price of stainless steel flat steel continued to rise.
In the past two months, after bullish prices in the second half of 2020, most base metals seem to have lost momentum. However, LME and SHFE nickel prices managed to maintain an upward trend until 2021.
The LME nickel closed at $17,995/mt in the week of February 5. At the same time, the price of nickel on the Shanghai Futures Exchange closed at RMB 133,650/ton (or USD 20,663/ton).
The price increase may be due to the bull market and market concerns about material shortages. Expectations for increased demand for nickel batteries remain high.
According to Reuters, in an effort to ensure the supply of nickel in the domestic market, the US government is negotiating with a small Canadian mining company, Canadian Nickel Industry Co. The United States wants to ensure that the nickel produced in the Crawford nickel-cobalt sulfide project can support the future production of electric vehicle batteries in the United States. In addition, it will provide supply to the growing stainless steel market.
Establishing this type of strategic supply chain with Canada can prevent nickel prices (and consequently stainless steel prices) from increasing due to concerns about material shortages.
Currently, China exports large amounts of nickel to produce nickel pig iron and stainless steel. Therefore, China is interested in most of the global nickel supply chain.
Nickel prices in China and the London Metal Exchange follow the same trend. However, prices in China have always been higher than those on the London Metal Exchange.
Allegheny Ludlum 316 stainless steel surcharge increased by 10.4% month-on-month to $1.17/lb. The 304 surcharge rose 8.6% to 0.88 US dollars per pound.
The price of China’s 316 cold rolled coil rose to US$3,512.27/ton. Similarly, the price of China’s 304 cold rolled coil rose to US$2,540.95/ton.
Nickel prices in China rose by 3.8% to US$20,778.32/ton. Indian primary nickel rose 2.4% to US$17.77 per kilogram.
Post time: Mar-12-2021