SHANGHAI, Dec. 26 (SMM) -- US new home starts in November were up 9.3%, much greater than the 3.9% growth during the same period last year; Germany’s producer price index for November was 5.2%, also up from the 4.4% growth last year. The US GDP deflator for Q3 was 2.6%, up from 2.5% last year, while the US University of Michigan final consumer confidence index for December was 69.9, up from November’s 67.7. Although recent economic data from the US and Europe has been positive, market sentiment was still dampened by falling prices in China’s stock markets. LME nickel prices were experiencing strong resistance at USD 19,000/mt, but will be supported at the 60-day moving average around USD 18,400/m in the coming week. LME nickel prices are not expected to fluctuate widely during the Christmas holiday period.
In China's domestic spot nickel market, following two price increases, Jinchuan Group’s ex-works nickel prices were RMB 130,000/mt, with any further increases unlikely. SMM expects spot nickel prices will fall slightly to between RMB 129,000-130,000/mt next week.