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Nickel prices steadied with weekly gains 

Nickel prices remained steady in major markets last week across globe as buyers raised bets on surging global demand and stable metal requirement from stainless steel mills and new energy sector. Meanwhile, suspension of refined nickel production from Chinese smelter due to higher production costs also supported the price sentiments. The refined nickel output of the plant accounts for 4 percent of the total national output in August. Even as the top consumer China continued its effort to tackle the surging commodity prices for stable industrial activity , healthy demand from stainless steel mills and electric vehicle battery makers is expected to further support the nickel prices.

The global nickel market deficit narrowed to 20,100 tonnes in June compared to a shortfall of 23,600 tonnes in May , as per the international Nickel Study Group (INSG). The first half of this year, the nickel market saw a deficit of 86,700 tonnes compared with a surplus of 74,200 in the same period last year.

In London Metal Exchange, nickel prices gained 2.21 percent last week and closed at USD 18747 per metric tonne. In China’s Shanghai Futures Exchange, nickel prices remained steady and not far from recent all time high of CNY150,000/MT made on 13th August. Meanwhile, MCX active nickel futures gained 0.92 percent to Rs.1418.80 per kilogram.

World Nickel Market ended in Deficit in first half 2021-WBMS

The world nickel market ended in deficit during the initial half of the current year, with apparent demand exceeding production by 41.1kt. This is in accordance with the latest trade statistics published by the World Bureau of Metal Statistics (WBMS). It must be noted that the primary nickel market had reported calculated surplus of 92.7kt in the whole of 2020.

China to auction 150,000 Tonne of metal from state reserves on Sept-1

China's state reserves administration said it would sell off a total 150,000 tonnes of its strategic metal stockpiles via public bidding on Sept. 1, in the third round of auctions aimed at cooling high prices.The National Food and Strategic Reserves Administration said in three separate notices it would auction 30,000 tonnes of copper, 50,000 tonnes of zinc and 70,000 tonnes of aluminium.

Warehouse inventory levels

Total warehouse inventories in LME registered warehouses decreased by 1.04 percent last week and totalled 195252 MT. The inventories in Shanghai warehouses decreased by 25.98 percent and totalled 2718 MT.

Outlook

Prices continue to be choppy with mild positive bias. Signs of a swift recovery in global economic sentiment and improved demand picture from China may offer support to prices. Meanwhile, and strong US dollar may dent major rallies in the commodity.

On the technical side, LME has stiff resistance at $20,000 break of which further rallies may be seen. Else, expect a choppy trading in near future.

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