SHANGHAI, Nov. 1 (SMM) - LME nickel market opened at USD 19,500/mt on Monday, and moved between the 5-10 day moving averages during the Asian trading hours along with the rising US dollar index. Bank of Japan intervened on Monday to slow the rise of the yen against the dollar. As a result, the US dollar rose sharply against the yen, which weighed down base metals. Inventories were 86,508 mt, down by 534 mt.
In the Shanghai nickel market, prices dropped along with falling LME nickel prices on Monday. In the morning business, prices were relatively high, with mainstream deals for Russian nickel between RMB 139,000-139,500/mt, and RMB 141,000/mt for Jinchuan goods. In the afternoon, traded prices slid with falling LME nickel prices, with deals between RMB 138,500-139,000/mt for Russian nickel, and RMB 140,500-141,000/mt for Jinchuan goods. Spot trading sentiment was low, and downstream producers were rarely seen in the market, with deals mainly among traders.
Based on SMM survey of price movements this week, approximately 50% of market players believe that nickel prices will continue to fluctuate this week due to lack of further positive news, with great resistance at USD 20,000/mt.
Another 30% of market players expect prices to drop this week. Although the deal reached during the EU summit last week helped improve market sentiment, the lack of details for the aid plan leaves markets fragile. The rest of market players believe that prices will likely rise due to fundamental support, given continuous declines in LME nickel inventories in recent days.