28 March 2023 – Chinese nickel demand continues to meet tight availability. And rising scrap prices are reported from Turkey and Europe, meeting strong demand and tight supplies. And economic sentiment in Asia continues to improve.
Nickel demand in China picks up
Demand for nickel products in China has picked up, according to recent reports, and continues to meet tight supply on the supply side. According to analysts, a short-term increase in the supply of nickel is currently not to be expected. In recent days, this has led to rising spot prices for nickel in particular. Prices on the Asian commodity exchange SHFE have also stabilised. Nickel prices on the European LME have already climbed to over $ 24,000 per tonne today.
Sentiment in Japanese economy continues to improve
Sentiment in the Japanese economy has continued to improve. The fast moving indexes for the manufacturing sector rose by one point and for production and orders by two points each. This means that Japan is not yet back in the growth zone, but the increases are robust and point to a recovery.
In Japan’s service sector, the index even climbed to 54.2 points, the highest level since 2013.
World Bank: Accelerating Recovery of China’s Economy Boosts Global Confidence
Also from China, the China Development Forum 2023 in Beijing reported that the Chinese economy is recovering at a growing pace. In an interview, World Bank Executive Vice President Tosenberg described this as good news for the global economy.
Scrap demand continues to rise
With the decline in energy costs, demand for scrap metal is also rising more strongly again. This was reported by the global association of producers and exporters of long steel products IREPAS. For February and March, the general demand for scrap has increased significantly.
Scrap as a raw material in short supply
Moreover, scrap as a raw material is in short supply overall and the outlook also points to tight availability. Turkey, in particular, is likely to remain another important buyer on the world market, as demand for scrap is extremely high following the severe earthquake. Turkish scrap prices, which are normally below those of Asia, have caught up to the same price level. For Europe, IREPAS expects the same upward trend for scrap.
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