LME Nickel prices may drop to $12,500-12,650 per ton level this week: SMM Survey

UNITED KINGDOM April 08 2015 12:04 PM   

 

SHANGHAI (Scrap Register): Nickel prices at London Metal Exchange are expected to drop to $12,500 - 12,650 per ton level this week, as per the latest survey conducted by the SMM, a Chinese metals market research company.

 

The participants estimate that weak sentiment and a large influx of imported nickel will weigh down nickel prices, in addition to expectation over a strong dollar and soft oil price.

 

An analyst from CITIC futures told SMM in an interview that weak consumption will push down nickel prices again from previous gains.

 

Price and inventories of stainless steel, utilization rate at NPI producers and nickel ore inventories at ports should be key elements for nickel price trends, the analyst added.

 

SMM survey also finds that 13% of market participants are optimistic, expecting LME nickel to trade between $12,900-13,250 per ton this week.

 

The rest 34% are neutral, seeing LME nickel prices between $12,650-12,950 per ton.