SMM Daily Review - 2011/11/16 Nickel Market

SHANGHAI, Nov. 17 (SMM) -- LME nickel prices fell to hit a low of USD 17,490/mt after opening at USD 17,725/mt during the Asian trading hours on Wednesday, but pared certain losses on weaker US dollar during the European trading hours. Concern over the European debt crisis continued to weigh on market, leading to cautious transaction between traders and weak performance of LME nickel prices. LME nickel inventories were 83,598 mt, down 90 mt from a day earlier. 

In the Shanghai nickel spot market, LME nickel price decline dampened trading sentiment in spot market, and soft demand also weigheded on spot nickel prices. During the morning trading hours, mainstream traded prices of nickel from Russia were around RMB 131,000/mt, and mainstream traded prices of nickel from Jinchuan Group were around RMB 133,000/mt. Spot nickel prices began to slip during the afternoon trading hours, with mainstream traded prices of nickel from Russia between RMB 130,000-130,500/mt and mainstream traded prices of nickel from Jinchuan Group around RMB 132,000/mt. Transactions were largely made during the morning trading hours, but turned quiet during the afternoon trading hours when nickel prices slumped.