Downward Space of Nickel Prices to be Limited

SHANGHAI, Apr 12 (SMM) - The spread between the SHFE front-month and next-month contracts did not narrow yesterday. The prices of NORNICKEL nickel hovered at highs despite the drop in futures prices in the early trading. NPI plants held prices firm. Recently, the transactions between traders and NPI plants have increased. Market players generally remained bullish. On the demand side, according to SMM research, the SS contract prices hovered at highs in the early trading, and the spot prices rose slightly. The spot transaction improved in the afternoon, and prices of cold and hot-rolled coil added about 200 yuan/mt. Some specifications of cold-rolled coils were out of stock, and some hot-rolled coil agents closed orders. Short-term spot stainless steel prices will rebound. In general, pure nickel demand grew slightly. SMM presumes that the downward space of nickel prices will be limited.