[institutional point of view] bottoming out and rebounding, the decline in nickel prices is far from over.

SMM News: Tuesday Shanghai nickel 2011 contract price trend bottomed out in intraday trading, nickel prices plummeted after the opening, once approaching the 110000 integer mark, but soon began to recover, recovering more than half of the decline, and finally closed at 113200 yuan / ton. The trend of nickel in the night market fluctuated and rebounded, while the price of nickel in Shanghai fell.

Industry: BHP Billiton: the construction of the Kwinana nickel refinery will be completed in the second half of the year, with a capacity of 100000 tons.

Nickel prices fell sharply yesterday, but rebounded at the end of the day and fell slightly at night. The fall in nickel prices did not begin yesterday. On the contrary, after hitting a high in early September, nickel prices began to peak and fall by more than 10 per cent as a whole. As we have warned before, the withdrawal of long positions in nickel prices has also proposed that nickel prices will enter the pattern of supply exceeding demand in the fourth quarter, which is mainly based on the continuous production capacity of Ferro nickel in Indonesia, which will change from quantitative change to qualitative change. The supply pressure of Ferro nickel will increase significantly, and we believe that the future trend of nickel price will be mainly shock decline. However, before the inventory pressure increases, the decline in nickel prices will still be repeated.

Operation suggestion: it is recommended to try to wait and see.