SHANGHAI, Sept. 19 (SMM) -- Although LME nickel prices surged by 2.42% on September 15th, trading volumes only increased slightly and positions were down significantly, suggesting only weak momentum of LME nickel prices. From a short-term perspective, since LME nickel prices expanded gains after breaking through USD 21,500/mt, prices should now advance and test USD 22,000/mt, with solid support at USD 21,000/mt.
In the Shanghai nickel spot market, consumption of refined nickel did not improve significantly. According to traders, enquiries have been sluggish and most traders and downstream consumers were reluctant to purchase refined nickel given current price volatility, while cargo-holders were unwilling to sell at current prices. As LME nickel prices advanced last Thursday, spot nickel prices moved higher on Friday, with traded prices between RMB 160,000-161,000/mt, up USD 1,750/mt from a day earlier. Jinchuan Group ex-works nickel price was still RMB 160,000/mt. SMM expects that domestic spot nickel prices will meet resistance at RMB 164,000/mt, but find support at USD 159,000/mt in the coming week.