CITIC Futures: Nickel prices fluctuate, monitor industry chain feedback and implementation status

On the supply side, domestic electrolytic nickel production in March increased month-on-month, while Indonesia’s March MIHP showed a certain decline both month-on-month and year-on-year. Overall visible inventories remain high, with future focus on the fulfillment of peak season demand. The current fundamentals for nickel do not show obvious marginal improvement; the overall supply and demand remain relatively loose. Global visible inventories stay at relatively high levels, exerting some pressure on prices. It is necessary to observe the strength of peak season demand fulfillment. Meanwhile, the adjustment of nickel ore pricing methods has exceeded expectations and has a greater impact on supporting the cost side of the nickel industry chain than previously anticipated. We believe that nickel prices are generally oscillating with a slight upward bias, and ongoing attention should be paid to the progress of relevant policies in Indonesia. (CITIC Futures)