SHANGHAI, Sept. 5 (SMM) -- LME nickel prices fell to USD 22,000/mt again last Thursday and will likely undergo further corrections in the short term, with solid support found between USD 21,500-21,700/mt and target still at USD 22,000/mt. If LME nickel prices break through USD 22,000/mt, prices may climb further to between RMB 22,700-23,000/mt in the following week.
In the Shanghai nickel spot market, supply is sufficient. Although nickel prices were supported by increased purchasing from steel mills, upward momentum for LME nickel prices was still weak. Traders, however, were cautiously and reluctant to move goods at low prices. Since LME nickel prices are expected to rebound in the following week, SMM expects that spot nickel prices will fluctuate around Jinchuan Group's ex-works nickel price of RMB 163,000/mt.