SMM Daily Review - 2011/11/24 Nickel Market

SHANGHAI, Nov. 25 (SMM) -- LME nickel prices fluctuated narrowly after opening at USD 17,180/mt during the Asian and early European trading hours on Thursday, meeting resistance at USD 17,325/mt and finding support at USD 17,145/mt. Tepid economic data from three major economies fueled short sentiment in the market and boosted the US dollar higher, which in turn weighed on base metal prices. Premium of LME spot nickel was USD 11/mt. LME nickel inventories continued to surge, with inventories up 2,190 mt to 88,476 mt. 
 
In the Shanghai nickel spot market, spot nickel prices continued to tumble along with steady decline of LME nickel prices. Mainstream traded prices of nickel from Russia were around RMB 125,500/mt. Although many cargo holders quoted offers at RMB 126,000/mt, actual transactions at this price level were limited. Mainstream traded prices of nickel from Jinchuan Group were in the RMB 127,500-128,000/mt range. Trading sentiment did not improve significantly, as downstream demand was soft and since traders had low interest in making deals. Most market players were pessimistic towards market outlook, and had low trading interest.