Supply-Side Reforms Are Going to Lift Base Metals (Feb 29th-Mar 4th)

[www.ferro-alloys.com] Since mid February, nickel price London Metal Exchange (LME) has shown an optimistic and positive trend. From Feb 12nd to Mar 3rd, nickel price has advanced from $7750 to $8990. The dynamic mentioned above continued during last week materially based on some recent encouraging news, for instance, the expectations of the National People’s Congress and the Chinese Political Consultative Conference (NPC&CPPCC) which to some extent would improve metal investors’ confidence.

Average price of nickel in Shanghai Futures Exchange (SHFE) raised by 2.4%-2.7% weekly and the quotations from Jinchuan Group were up-regulated timely and shrewdly day by day. And the price gap between Jinchuan nickel and Russian nickel maintains at about 400-500yuan. In fact, the end-users did not show great demand acquirements as small and medium-sized enterprises performed better than domestic steel giants nowadays.

• [Editor:Juan]