Dear customers and partners:
Recently, Beijing Shougang Gitane New Materials Co., Ltd. has made a moderate price adjustment for its nickel chromium alloy series products. This price adjustment is not a subjective act, but is mainly due to the continuous rise in global nickel prices and the combination of multiple factors in the market environment. We will provide a detailed explanation of the reasons for the price adjustment based on the principle of transparency and integrity. Thank you for your understanding and support.
As the core raw material of nickel chromium alloys, the price fluctuation of metallic nickel directly determines the cost base of alloy products. According to data from the London Metal Exchange (LME), the price of London nickel futures has been fluctuating upwards since January 2026. As of January 26, the closing price was $18590/ton, with a monthly increase of 20%. The highest price reached $19160/ton during trading, which is highly consistent with Goldman Sachs' previous prediction - Goldman Sachs pointed out in a report released in January 2026 that if Indonesia implements strict nickel mining quotas, the average nickel price will approach $18000/ton. This round of nickel price increase is not a short-term speculation, but the result of the dual logic resonance of supply contraction and demand growth. Bloomberg also mentioned on January 24th that the rise in nickel prices is an important component of the global metal sector's general upward trend, forming a linked upward trend with copper, aluminum and other varieties.
On the supply side, the policy adjustment of Indonesia, the world's largest nickel producer, has become a key variable. At the beginning of 2026, the Indonesian Ministry of Energy and Mineral Resources announced a significant decrease of over 34% in the annual nickel ore RKAB production quota compared to 2025, and restricted the export of low value added nickel ore, requiring local processing into high ice nickel, nickel sulfate and other finished products before export. CITIC Securities estimates that this move will lead to a decline in Indonesia's nickel production to 2.6-2.7 million tons, and the global nickel industry supply gap is expected to reach 200000 tons, a five-year high. Interface News Analysis pointed out that in the short term, nickel prices are expected to show a strong trend driven by Indonesia's quota policy. In the medium term, with the implementation of the policy, the global nickel supply and demand pattern will shift from surplus to tight balance. Meanwhile, data from the World Bureau of Metal Statistics (WBMS) shows that although there will be a temporary surplus of refined nickel worldwide in 2025, the gap will gradually emerge as supply shrinks in 2026, further supporting the upward trend of nickel prices. As a result, from mid December 2025 to January 2026, the main contract price of Shanghai nickel increased by over 30%, forming a linkage with international nickel prices.
At the market environment level, the structural contradiction between supply and demand further exacerbates cost pressures. On the demand side, the expansion of the global new energy vehicle industry has driven a surge in nickel demand. The Securities Times cited industry analysis and pointed out that the mass production of solid-state batteries will open up vast space for nickel demand, with nickel content in the nickel based alloys used accounting for about 55%. At the same time, the demand for nickel chromium alloys in downstream fields such as photovoltaics, semiconductors, and high-end home appliances is steadily increasing, while the industry supply is constrained by raw materials and difficult to release quickly. In the international market, Nippon Steel has raised the prices of nickel based stainless steel plates for four consecutive months, confirming the industry commonality of raw material costs transmitting to end products. This trend is in line with Bloomberg's assessment of the global mining sector's super cycle opening.
As a company specializing in high-end electric heating alloy materials, Shougang GITANE always takes "quality first" as its core, insists on using high-purity raw materials to produce series of nickel chromium alloy products such as Cr20Ni80, and refuses to reduce the standard compression cost of raw materials. In the face of this round of cost increases, we have digested some of the pressure by optimizing production processes and improving production efficiency. We have tried our best to control the magnitude of this price adjustment and minimize the impact on customers.
In the future, we will continue to track global nickel prices and market trends, strengthen supply chain management and technological innovation, and actively provide customers with more cost-effective solutions while ensuring product stability and high performance. Shougang GITANE is willing to work together with all partners to achieve win-win results and cross the market cycle together.
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Company Name: Beijing Shougang Gitane New Materials Co., Ltd.
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Country: China
Website: https://www.sgjtaspark.com/
