SHANGHAI, Jan. 17 (SMM) -- LME nickel prices advanced all the way after slipping to a low of USD 19,355/mt during Monday’s Asian trading hours, and rallied further to hit USD 19,590/mt during the European and New York trading hours, with resistance still at 5-day moving average.
In the Shanghai nickel spot market, mainstream traded prices of nickel from Jinchuan Group were in the RMB 136,800-137,200/mt range, and mainstream traded prices of nickel from Russia were between RMB 135,500-135,800/mt. As Chinese New Year holiday nears, downstream producers showed low interest in purchasing as they will gradually close for holiday, and traders also try to keep low inventories in order to reduce risks. In this context, overall trading sentiment was cautiously quiet.
Based on result of an SMM survey on market sentiment, 60% market players believe that LME nickel prices will gradually fall this week. Prospect of the European debt crisis is dim. It is expected that Greece is quiet likely to be the first debt-defaulter among developed economies in 60 years, adding market concern over European economic prospect. Therefore, the US dollar may continue to slip and the US dollar may still have upward momentum, which will weigh on LME nickel prices.
30% market players hold that LME nickel prices will continue to vacillate in the following week. It is expected that Greece will hammer out counter-measures to avoid deterioration of the European debt crisis at its debt restructuring meeting, which will comfort market jitters and dragged down the US dollar. In this context, LME nickel prices will receive support. However, as Chinese New Year holiday nears, trading sentiment will remain quiet. In this context, LME nickel prices will meet resistance to advance further.
10% market players expect that LME nickel prices are expected to rebound in this coming week. As market already digested negative news from the European debt crisis, market is expected to gain upward momentum on the US economic recovery.