With the sharp correction in nickel prices, the focus of negotiations between buyers and sellers of high-nickel pig iron also showed a sharp downward trend this week. On November 15, SMM high-nickel pig iron (ex-factory price) was 1020-1040 yuan / nickel point, which was 95 yuan / nickel point lower than that of 1110-1140 yuan / nickel point on Friday.

The decline in nickel prices continued this week, the stalemate in the high nickel and iron market was alleviated compared with last week, and some holders took the initiative to quote 1050 yuan / nickel point (including tax) for shipments. Considering the current loose supply of high nickel and iron and the difficulty of stopping the decline in stainless steel prices, the high nickel and iron prices still did not meet the psychological expectations of stainless steel plants and failed to stimulate stainless steel plants to purchase. From the seller's point of view, according to the current cash cost and the current high nickel iron market negotiation price calculation, except Shandong, Fujian area, the other high nickel iron plant has basically been in a state of loss (the specific cost is shown below). The cost of EF furnace in Inner Mongolia is about 1150 yuan / nickel point, and the loss is large. Under the pressure of cost, although the price of high nickel and iron in the later stage has the trend of weakening with the nickel price, the rate of decline is limited. SMM expects that if nickel prices continue to fall next week, high nickel and iron prices may soon fall to the 1000 yuan mark but continue to fall sharply.

The narrowing of profit difference between high nickel and iron is mainly due to the temporary difficulty of accepting the lower reaches of high price nickel and iron.