SMM Daily Review - 2011/11/10 Nickel Market

SHANGHAI, Nov. 11 (SMM) -- On Thursday, LME nickel prices fluctuated around USD 18,000/mt after opening at USD 18,165/mt during the Asian trading hours. During the early European trading hours, LME nickel prices plunged to hit a low of USD 17,850/mt due to increased risk aversion sentiment from worsening economic condition in Italy, but later rebounded above USD 18,000/mt. LME nickel inventories were 83,280 mt, up 120 mt from a day earlier.

In the Shanghai nickel spot market, sluggish performance of LME nickel prices dragged down spot nickel prices. Although spot nickel was offered in the RMB 133,000-135,000/mt range, actual transactions at these price levels were extremely limited. Mainstream traded price of nickel from Russia were in the RMB 131,000-131,500/mt range, and mainstream traded prices of nickel from Jinchuan Group were in the RMB 134,000-134,500/mt range. Transactions were quiet sluggish in the market, which forced traders to cut prices. However, price cut from traders still failed to boost market transactions.