SHANGHAI, Feb 28 (SMM) - The nickel prices surged and pulled back amid military conflicts between Russia and Ukraine last week, and the SHFE SS contract prices dropped due to bearish sentiments and lower costs.
Tsingshan Group cancelled the price restrictions, which also suppressed the futures prices. The SHFE SS2204 contract dropped by more than 1,000 yuan/mt on the week.
The arrivals in the market will increase in the near term, while the market sentiments are bearish, and the transactions have been muted, which will further weigh on the prices.
There is no new capacity to be put into production in the mid to long term, but the stainless steel mills will basically resume the production at full capacity in March, and the output will increase on the month.
The demand in February has been suppressed by the COVID-19 pandemic and other factors. If the demand can rebound fully in March, the prices may gain support. Otherwise, the prices may fall further.
The cost support also weakened as the stainless steel scrap prices dropped. The prices of SHFE SS2204 contract are expected to move between 17,500-18,800 yuan/mt this week.