- Nickel prices fell over 20% in Q1 of 2023, with industry
experts predicting the market will remain volatile due to factors such as
the strengthening U.S. economy and fears of a financial crisis.
- Hot-rolled coil prices dropped 13% from their peak in April, falling
back to March levels, and steel demand in China decreased by 3.4% YoY in
April.
- Despite these short-term downward trends, metal prices remain
above their long-term average, although there's increasing bearish
pressure among HRC markets.
Via AG Metal
Miner
Metal
prices demonstrated increasingly-bearish short-term movement over the past
couple of weeks. HRC, for instance, continues to trend downward while nickel
faces extensive bearish pressure. But while prices may continue to decline in
the short-term, will the long-term trend continue?
Nickel in a Bearish Market
Nickel
prices fell more than 20% in the first three months of 2023, and experts project that the sector will remain volatile.
According to LME statistics, players continue to abandon the nickel market, a
trend many traders expect to continue. And as more people negotiate nickel
prices directly, markets will see even lower volumes and increased volatility,
as with other metal prices.
Overall, nickel prices have remained unpredictable throughout 2023 due to
factors such as U.S. strengthening and worries of a potential financial crisis.
In fact, nickel price action recently breached short-term support levels,
indicating a possible long-term downtrend continuation.