SHANGHAI, Dec. 6 (SMM) -- LME nickel price fell to hit a low of USD 17,550/mt after opening at USD 17,733/mt during the Asian trading hours on Monday, but later pared certain losses on weaker US dollar. During the early European trading hours, LME nickel prices resumed upward momentum, but only advanced limited. Generally speaking, LME nickel prices continued to extend upward momentum. LME nickel inventories were 90,456 mt, down 366 mt from a day earlier.
In the Shanghai nickel spot market, Jinchuan Group raised ex-works nickel prices by RMB 2,000/mt to RMB 128,000/mt. Last Friday’s LME nickel price hike boosted Monday’s spot nickel prices. Mainstream traded prices of nickel from Russia were in the RMB 127,000-127,500/mt range, and mainstream traded prices of nickel from Jinchuan Group were in the RMB 128,800-129,300/mt on Monday. Overall trading sentiment was quiet, as soft demand dampened transactions in the market.
Based on result of an SMM survey on market sentiment, 50% market players believe that nickel prices will advance slightly this week, as they positively expect that the upcoming EU summit will come up with constructive measures to solve the European debt crisis. Coupled with lower unemployment rate from the US and slight easing monetary policy from China, short sentiment waned to extent, which boosted optimism in the market. 30% market players hold that nickel prices will be on downward track this week, as concern over global economic slowdown will continue to weigh on nickel prices. The remaining 20% market players predict that nickel prices will remain fluctuation trend. Although market players are positively expecting the EU summit, sluggish domestic downstream demand will restrict spot nickel prices from rising.