SHANGHAI, Oct 07, 2010 (Dow Jones Commodities News via Comtex) -- Jinchuan Group Co. has raised its refined nickel prices by CNY8,000 ($1,197) to CNY180,000 a metric ton, effective Friday, the company said on its website.
The hike comes after three-month nickel on the London Metal Exchange gained 2.1% during the Oct. 1-7 National Day holiday in China, with the contract peaking Wednesday at a five-month high of $25,200/ton Wednesday on the back of a weakening dollar amid investors' expectations that more central banks will take monetary measures to stimulate their economies, leading to greater demand for commodities and inflating prices.
The price that Jinchuan Group, the country's largest nickel producer by output, sets for its nickel is a bellwether for the domestic industry.
In late August, the company lowered its refined nickel prices for the first time since early June in response to falling LME nickel prices, although it hiked the prices twice, by a combined 3%, to CNY172,000/ton in early September amid an LME nickel recovery.
Spot refined nickel prices, which in China usually track three-month LME nickel prices, were quoted around CNY172,500-172,800/ton on the Shanghai Metals Market on Sept. 30.
Around 0245 GMT, three-month LME nickel was at $24,100, up $200, or 0.8%, from Thursday's late curb.