SHANGHAI, Aug. 16 (SMM) — In the Shanghai spot nickel market, trading sentiment was depressed by movements in the LME nickel market. Traded prices for Russian nickel were mainly around RMB 164,500/mt, and RMB 165,500 for nickel from Jinchuan, with some made at around RMB 165,000/mt. The weakening upward momentum added to the wait-and-see attitude in the market, leaving overall trading sentiment lackluster. Downstream producers remained inactive in purchases, and time is needed for the arrival of the traditional peak demand period.
Based on SMM survey of price outlook, approximately 55% of market players believe that nickel prices will be generally on a steady trend this week. After sharp declines, nickel market is expected to experience fluctuations to look for a clear direction. About 25% of players expect nickel prices to rebound further, since a weak US dollar from the US rate decision will help support base metal prices. In addition, buying activity at lower prices will favor nickel prices. The remaining 20% market players believe that nickel prices will drop, given poor market fundamentals, commissioning of new mines and oversupply.