SHANGHAI, Sept. 14 -- Monday, LME nickel prices opened at USD 21,180/mt and closed at USD 21,563/mt, up USD 318/mt from a day earlier, with the highest price at USD 21,655 mt and the lowest price at USD 20,801/mt. On Tuesday, LME nickel prices largely fluctuated around USD 21,500/mt after opening at USD 21,645/mt, without making any significant breakthrough. Market sentiment was still weighed by concern over the European debt crisis. LME nickel inventories were 99,060 mt, down 120 mt from a day earlier.
In the Shanghai nickel spot market, offers were relatively high in the morning trading hours, but prices later slipped along with Tuesday's weak LME nickel prices. Mainstream traded prices of nickel from Russia were in the RMB 159,000-159,500/mt range, and mainstream traded prices of nickel from Jinchuan Group were around RMB 160,500/mt. Overall trading sentiment was quiet, with few downstream consumers entering market. Despite of the onset of high-demand period, consumption still did not improve significantly.
Based on result of an SMM survey, 70% market players believe that nickel prices will be neutral, and will not make significant breakthrough, with support at USD 21,000/mt and resistance at USD 22,000/mt. As market is haunted by concern that the European debt crisis may spread and deteriorate further, most market players are adopting a wait-and-see attitude. 30% market players expect that nickel prices will continue to fall. Based on current LME nickel price performance, prices meet great resistance to advance further, as LME nickel prices fail to make any breakthrough for several times. It is expected that LME nickel prices will continue to extend weak momentum, and low-end prices will slip to certain extent in the coming week.