SHFE nickel traded in a broad upward range last week. On the macro front, the bullish logic from earlier periods continued to play out. Weaker overseas inflation eased expectations of Fed rate hikes, putting the dollar under pressure and supporting a broader valuation recovery across the non-ferrous metals complex.
On the industrial front, the key support came from Indonesia's supply outlook. The ESDM reiterated that no large-scale supplementary RKAB quotas would be issued, and with the July 31 filing deadline approaching, market expectations of tight ore supply continued to build, underpinning prices.
However, with the downstream market in its traditional off-season, spot prices struggled to follow the rally, and buying interest faded after nickel prices peaked. At the same time, delayed sulphur cargoes are gradually arriving, easing the earlier tightness in hydrometallurgical feedstock and capping further upside. Overall, the market is characterised by strong expectations but weak spot fundamentals.
