Silent nickel for more than ten days finally ushered in an outbreak yesterday. It soared 445 US dollars a day, effectively breaking the 14000 mark in one fell swoop, creating the largest increase in nearly a month. From the perspective of the daily trend, there is a big Yang line in the short term. The army meets the trend in Malay, and the market has formed a bullish atmosphere.
From the perspective of yesterday's trend, it is basically a unilateral upward trend without suspense. After opening in the early morning, it rushed to 14130 points and fell slightly. However, near the 14000 mark, there was a strong willingness to invest in long positions. After that, prices continued to rise and Asian markets closed. Later, the nickel price accelerated upward, with a short-term increase of over US $ 200. Although it fell back, it rose strongly again overnight. It eventually closed up by US $ 445 to US $ 14,475 / ton, effectively breaking the 14,000 mark in one fell swoop.
Stimulated by favorable factors such as the rise in nickel prices, 304 stainless steel is also rapidly rising in the short term. The cumulative increase during the week reached 300-400 yuan / ton. Taking private resources as an example, the base price rose from 14400-14500 yuan / ton to 148000-14700 yuan. /Ton.
In mid-April, stainless steel was boosted rapidly by the LME nickel boost, steel mills' profits improved, and production power increased. April production continued to increase by 30,000 tons.
In May, the performance of stainless steel was significantly stronger than the price of nickel, and the profit of steel mills continued to improve, which stimulated the production enthusiasm of steel mills. In May, some steel mills arranged for maintenance and output was expected to decrease. According to our network ’s preliminary forecast, May ’s output will be sequential It fell by 4.1%, but still increased by 25.5% year-on-year, and the current output is still at a historical high. The demand for nickel metal will still be maintained at a high level, which will undoubtedly form a strong support for nickel prices.
From the perspective of nickel's own supply and demand fundamentals and the external market, there is a strong upside in the short term. From a technical point of view, the nickel in the short term has formed a breakthrough of 14,000 points. From the perspective of the daily line, it is even more likely to accelerate the upward trend. Do not rule out testing 15,000 points.
From: Stainless Steel Business District