London metals rose across the board, with domestic and international nickel ore prices remaining stable, and nickel-iron prices holding steady. The London Metal Exchange announced it will suspend accepting nickel deliveries from the Norilsk Nickel PJSC's Harjavalta plant in Finland, leading to a significant increase in nickel prices yesterday. The Indonesian government has approved an average annual production of 240 million tons of ore over the next three years, which is expected to meet future nickel product production demands, easing supply concerns. However, nickel ore resources remain tight, keeping short-term prices high. The Indonesian government is conducting a comprehensive evaluation of the termination of RKEF smelter licenses, and the situation is being closely monitored.
In the new energy sector, both supply and demand for nickel sulfate are weak, and nickel prices are expected to fluctuate widely with the base metals sector in the short term. Overall, the fundamentals have improved with a month-on-month decrease in production, inventory reduction, and a gradual transition from the off-season to the peak season, improving the supply-demand balance. Monetary policy may further ease in July, awaiting guidance from the mid-month government meeting. U.S. inflation has eased, raising expectations for interest rate cuts and improving macroeconomic sentiment, with the commodity index rebounding after a decline. In the short term, the 304 cold-rolled spot price is expected to show strong fluctuations. Attention should be paid to market transactions and inventory digestion following price increases.
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