London metals showed mixed performance with nickel ore and nickel iron prices remaining stable domestically and internationally. The London Metal Exchange will suspend accepting nickel deliveries from Norilsk Nickel PJSC's Harjavalta plant in Finland. Indonesia has approved the production of 240 million tons of ore annually for the next three years, easing future nickel supply concerns. However, nickel ore resources remain tight, keeping prices high in the short term. The Indonesian government is thoroughly evaluating the termination of RKEF smelting plant licenses. In the new energy sector, nickel sulfate supply and demand are both weak, leading to expected short-term nickel price fluctuations within the broader base metals market.
Overall, fundamentals are improving with lower production, inventory reduction, and the transition from the off-season to peak season boosting demand. The supply-demand balance is improving. July's monetary policy may ease further, awaiting mid-month government meeting guidance. US inflation is easing, increasing rate cut expectations and improving macro sentiment, leading to a rebound in commodity indices. In the short term, 304 cold-rolled spot prices are expected to fluctuate strongly. Market transaction follow-up and inventory digestion should be closely monitored.
Comments