The surge in LME nickel futures on February 21, reaching a peak not seen since December 28 last year at US$16,930/ton, was primarily attributed to concerns within the market regarding potential disruptions in the supply chain due to the US considering sanctions against Russian metals following the death of opposition leader Alexei Navalny. This increase was further bolstered by a slight decrease of 24 tons in LME-monitored nickel stocks on the same day, bringing the total to 70,296 tons, alongside a weakened US dollar index.
The oversupply in the nickel market is attributed to increased production in Indonesia. Following the Lunar New Year holiday, other LME metals saw minor movements as markets regained momentum in China, one of the largest metal consumers. According to market experts, market sentiment is currently focused on the US Federal Reserve's messaging and the potential timing of interest rate adjustments; In addition, there are concerns about the health of China's real estate sector and expectations regarding incentive measures. In addition, a general improvement in the macroeconomic situation for base metals is forecast in the second half of 2024, which is expected to increase prices throughout the complex, except for nickel.
Moreover, Indonesia's Tsingshan significantly raised its prices for hot-rolled stainless steel post-Lunar New Year, prompting expectations among Taiwanese market participants for possible price hikes in stainless steel offers from key players like Yusco, Tang Eng, Walsin Lihwa, and Yieh Hsing in March.
Comments
No comment yet.