SHANGHAI, Oct. 17 (SMM) -- In China, the Central Government revealed a series of supportive measures for small and medium sized enterprises, while Huijin Investment purchased shares in China’s four state-owned banks, boosting financial markets. Government’s relief measures may boost markets in the short term, and the possibility of further declines in LME nickel prices is low. However, resistance to higher LME nickel prices is also strong, so SMM expects LME nickel prices will continue to fluctuate. Technically speaking, LME nickel prices are meeting strong resistance between USD 19,300-19,500/mt, with support at USD 18,000/mt.
In China’s domestic markets, Jinchuan Group’s ex-works price was RMB 139,000/mt, helping support low-end spot nickel prices. Market demand remains soft following China’s National Day holiday, and SMM expects spot nickel prices will continue to fluctuate at low levels and will track LME nickel prices at around RMB 140,000/mt.