Downstream production of the nickel industry is restricted, and nickel prices have fallen
Entering September, ferronickel smelters in Hebei, Liaoning, Jiangsu and other places successively received production reduction notices. So far, the ferronickel industry, along with the downstream steel industry, has joined the ranks of power curtailment and production. In contrast, ferronickel prices, Performance during this period is still relatively strong.
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Due to the reduction in terminal demand, the willingness of many downstream industries to stock up before the holiday has been reduced. Especially for the purchase of nickel-based raw materials, the demand for downstream factories has decreased, the production speed has slowed down, and the overall nickel market has shown a slight downturn. Downstream nickel-based factories such as stainless steel suppliers are facing production cuts in the near future. At the beginning of September, the country implemented restrictions on production in main production areas. At the end of September, the ternary battery industry also joined the ranks of production restrictions. The production restrictions on ternary precursors and positive materials such as Hunan, Guangdong, and Guangxi were around 30%.
Looking at the overall situation, the incremental production cuts in battery companies have reduced the demand for related companies to purchase nickel raw materials for smelting. The decline in stainless steel output is expected to become the norm in the fourth quarter, when nickel prices will also appear weak, and nickel prices during the National Day holiday. The decline can be confirmed by this, that is, the LME nickel price dropped by 1.63%, from 18,385 US dollars/ton to 18,085 US dollars/ton.
