Sinopec News: Geopolitical tensions suppress risk appetite, nickel prices fluctuate and decline

Affected by geopolitical disturbances and weak fundamentals, recent spot nickel prices have been volatile and declining. As of April 7th, the domestic spot nickel price is 135,700 yuan/ton, down 0.91% compared to last week, and up 10.41% year-on-year. On the macro front, geopolitical tensions and expectations of a strong dollar suppress risk appetite, leading market participants to adopt a cautious attitude. In terms of inventories, both LME and SHFE nickel stock levels are at relatively high historical levels, dampening the momentum for nickel price increases. Regarding spot transactions, downstream buyers mostly remain on the sidelines, mainly purchasing for immediate needs, with no significant increase in trading volume. Looking ahead, the direction of Indonesia’s nickel industry tax policies may become a key variable influencing nickel prices. Although the delayed implementation of Indonesia’s super-profit tax on nickel has not yet been detailed, with discussions ongoing on export tax rates, market expectations of rising industry costs persist. Market forecasts suggest that short-term spot nickel prices will fluctuate mainly within a limited downside space. (Zhuochuang Information)