In November 2022, the average monthly price of mid-grade Ni 1.5% nickel ore was $72.25/wmt on a CIF basis, an increase of $0.85/wmt from the previous month. The average monthly price of high-grade Ni 1.8% nickel ore was $105/wmt, up $0.3/wmt from the price in October. The nickel ore prices managed a minimal MoM growth as a whole in November, and the market transactions were poor. On the supply side, the nickel ore supply was scarce after the Philippines entered the rainy season, and the mines in the northern region hiked the ore prices constantly. But at the same time, the ocean freight declined, partly reducing the cost of nickel ore CIF major ports in China. In terms of NPI, the prices kept falling, and the NPI plants boycotted high nickel ore prices in light of squeezed profits and reduced the restocking demand. Nickel ore prices lacked strong upside momentum.

The nickel ore prices are expected to fall slightly in December partly as the sluggish demand has forced the mines to lower the offers. On the other hand, the NPI plants put pressure on nickel ore prices amid poor profitability. NPI prices are expected to rebound slightly as the stainless steel mills would usually build stocks ahead of the Chinese New Year, boosting nickel ore prices to some extent. The prices of Ni 1.5% nickel ore are expected to move between $70-75/wmt in December.
Source: SMM Information & Technology