[Ni] CBI Morning Review - 2008/12/25 Nickel Market

SHANGHAI, Dec. 25 -- The latest U.S. economic data released yesterday were still not optimistic, the number of unemployed reached a record high, and the number of orders for durable goods also fell again. Crude oil dropped again to USD 35/mt, while the metal prices fluctuated slightly with the slim transactions due to the Christmas holiday. Nickel inventories continued to grow 1164 mt and will reach 80 kt by the end of the year. 

    Recently domestic nickel transactions became weak due to the prices decline, and traders reduced imports due to the domestic spot prices lower than prices at abroad. The stainless steel prices fluctuated slightly, and the transactions tended to be sluggish. The latest data about Wuxi market inventory shows that the total inventories were about 80.7 kt, inventories in the market were about 23.6 kt, and the remaining inventories were 23.6 kt. Compared to last week, cold-rolled inventories reduced 2.5%, while hot-rolled inventories reduced 6.8%.

    Currently the favorable and unfavorable news were in balance, leading no directions for the market trend. Nickel prices are expected to fluctuate slightly after the Christmas holiday in the USD 9,500-10,000/mt range.

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