SHANGHAI, Sept. 26 (SMM) -- A technical rebound is possible for LME nickel prices since analysts believe LME nickel has recently been oversold, with strong support available at USD 17,000/mt. At present, short power is strong and a pessimistic sentiment is dominating markets. If LME nickel prices fall below this support level, prices may fall all the way to USD 14,000/mt.
In China’s domestic nickel spot markets, panic sentiment from the possibility of another global recession was growing, and may drive nickel prices down further. With soft demand in domestic nickel spot markets, domestic nickel prices will only move passively along with LME nickel price declines. SMM expects spot nickel prices will move in the RMB 130,000-140,000/mt range. If LME nickel prices fall further, spot nickel prices will fall to RMB 120,000/mt.