Uncertainties in the Chinese stainless steel market, caused by environmental inspections in the downstream supply chain, were the focus of discussions on nickel's price in the second half at the Shanghai nickel forum held by COFCO Futures on Wednesday June 20.
Nickel prices volatile in short term, bullish long term Panelists at the Shanghai forum were mainly positive about nickel prices in the long term due to rising demand from the electric vehicles (EV) sector but voiced concerns for the second half of 2018 due to uncertainties over its main downstream market, stainless steel. "In the long term, nickel price will rise amid fluctuations as the EV sector will lend great momentum to it. But for now and the coming six months, stainless steel is still the main driver for nickel [demand], thus capping the high end of nickel price," Ning Wang, deputy director of investment research of Yinyi Group, said. Zhiyong Wang, deputy general manager of Grand Flow Resources, added that there is an element of overvaluation in the nickel price at the moment. Metal Bulletin assessed prices of...