SMM Daily Review - 2011/12/13 Nickel Market

SHANGHAI, Dec. 14 (SMM) -- Rating agencies warned the lack of radial measures from the EU summit to solve the debt crisis. In addition, Shanghai Composite Index fell below 23000. In this context, market confidence was soured, and pessimistic sentiment prevailed in nickel market. Technically, LME nickel prices are expected to struggle between USD 18,000/mt and 60-day moving average. LME nickel inventories were down by 330 mt to 89,994 mt.

In the Shanghai nickel spot market, traded prices of nickel from Jinchuan Group were in the RMB 129,500-130,000/mt range, down RMB 1,050/mt. Traded prices of nickel from Russia were in the RMB 127,700-128,000/mt, down RMB 1,050/mt from a day earlier. Hit by LME nickel price slump and Shanghai Composite Index’s decline below 23000, spot nickel traders’ attitudes were mixed. Some pessimistic traders moved goods at low prices, resulting in brisk transactions. However, some traders were reluctant to move goods and adopted a wait-and-see attitude. Generally speaking, transactions were still relatively quiet, and the low-priced goods were favored by buyers.