Everbright Futures: New variables on the supply side, nickel prices rise intraday

According to Mysteel’s investigation, recently, an Indonesian MHP company’s sulfur procurement prices have surged significantly, with some sulfur purchases for July delivery reaching as high as $1,100-1,200 per ton, hitting a record high. The global sulfur prices continue to soar, combined with high shipping and rerouting costs, and MHP costs are still expected to rise further. Regarding Indonesia’s nickel ore benchmark prices and tax adjustments, on one hand, the adjustments have driven up costs, with nickel pig iron prices shifting from decline to rise, further solidifying stainless steel costs, and increased enthusiasm for stainless steel procurement driving inventory reduction; on the other hand, wet-process ore costs are rising, and MHP supply may gradually tighten, with attention to whether sulfur prices and supply will recover. In the short term, opportunities for low-position long trades can still be monitored, but currently, it is important to note that primary nickel inventory pressure remains relatively high, and production cuts on the supply side may gradually promote inventory reduction, which will positively feedback into prices. Meanwhile, from the current stage, policies are basically implemented and fulfilled, and subsequent focus should be on absolute prices and whether additional quotas will be issued in July. (Everbright Futures)