Shanghai Nov. 8 (SMM)-On Monday, LME nickel prices edged down during Asian trading hours after opening at USD 18,800/mt, and slid to USD 18,550/mt during earlier European trading hours along with a stronger US dollar. Markets were waiting for the development of the Euro-zone finance ministers meeting, with pressures felt in the market. Inventories were 85,056 mt, down by 420 mt.
In the Shanghai nickel market, spot prices dropped on Monday along with weak LME nickel prices. Transactions for Russian nickel were generally between RMB 136,000-136,500/mt, and RMB 138,800-139,000/mt for Jinchuan nickel. Trading sentiment was low, with no improvement in downstream demand, and deals were mainly made among traders.
According to SMM survey of price trends this week, approximately 50% of market players believe that nickel prices will continue to fluctuate, with prices expected between USD 18,000-19,000/mt. Although the resolution plan for the European debt issues has boosted market sentiment, no details are now available. Meanwhile, economic conditions in the Europe have also triggered market concerns, leaving nickel prices under pressures. About 30% of market players expect prices to drop further this week, given weak market fundamentals and market worries over macro-economic conditions. The rest of market players believe that nickel prices will rise along with easing concerns over the European debt issues and optimism towards demand in China from the loosening monetary policy.