On March 8, London Nickel staged an unprecedented "short" market, and then LME issued a statement to cancel all transactions on March 8 and suspended trading for a week. London Nickel restarted on March 16, and the opening benchmark price was the closing price on March 7.
At the opening, it fell by the daily limit, and then fell more than the 5% limit. A few minutes later, LME suspended trading, saying that the limit-down range may be a technical problem. The Federal Reserve announced a 25 basis point interest rate hike as scheduled. On the 17th, the LME expanded the one-day fluctuation of nickel from 5% to 8%, and fell by the daily limit again at the opening. On the 18th, LME once again expanded its rise and fall to 12%, and continued to limit down ($36,915/ton) at the opening.
The price of steel mills is generally not low!
After stainless steel futures stabilized last Friday, the spot market began to pick up. Because the current cost of goods taken by merchants is more than 19,000 RMB, and the spot price has fallen to this price level. When the market stabilized, the spot goods began to support the price. Later, a new decline in steel mills had little impact on this. This week, the news of London Nickel opened the market to test the price. The price of 304 stainless steel sheets/coils is excited to chase up all the way, while 201 stainless steel sheets/coils maintains the specification price difference.
The inventory is gradually decreasing!
The early price decline made the trade shipments relatively active. Later, LME nickel was forced to drive up the price of stainless steel. Although steel mills continue to deliver the goods of stainless steel sheets and stainless steel coils, it will stimulate the low inventory market and the downstream industries. Stocking coexist with rigid demand. Moreover, spot resources are in the hands of steel mills, and resources will be also operated quickly when the price increases.
About Stainless steel
After the suspension of London Nickel, Shanghai Nickel rose for three consecutive days, and oil prices have risen recently. The excited rise in futures is fully prepared for the opening until London Nickel opens and falls to the suspension, and the futures is fluctuated. Logistics was blocked due to the rebound of the epidemic in downstream, and some steel mills reduced production of 300 series of stainless steel sheets and stainless steel coils . Before the deadline, the main force of stainless steel rose by 125 RMB/ton and closed at 20035 RMB.
The spot market is mixed.
At the beginning of this week, London nickel did not open, but waited until Qingshan Steel Factory fell. The market price performed differently for a while, rising and falling several times a day. After the spot price rose, with the rise of Shanghai nickel futures, but after the increase, the popularity of inquiry was limited. There were preferential promotions and negotiable orders. In addition, the logistics interference brought about by the epidemic control, the market was relatively cautious.
Although the price is unstable, but for our company, we still have the market for 304 stainless steel sheet and 201 stainless steel sheet. On the contrary, we have had an increase in inquiries so far.
