SHANGHAI, Jan. 17 (SMM) -- China’s GPD for Q4 2011 grew by 8.9% YoY, better than market expectation, driving up China’s stock market. China’s better-than-expected GDP data stimulated short covering in euro, lending support for risk assets, such as LME nickel. As of 4:00 pm on Tuesday, LME nickel prices already advanced to USD 19,500-19,600/mt. It is expected LME nickel prices will continue to advance slightly during the European trading hours.
In the Shanghai nickel spot market, mainstream traded prices of nickel from Jinchuan Group were between RMB 137,000-137,500/mt, and mainstream traded prices of nickel from Russia were between RMB 135,500-136,000/mt during the morning trading hours. As LME nickel prices advanced to certain extent and since supply of goods reduced, mainstream traded prices of nickel from Jinchuan Group advanced to RMB 138,000-138,500/mt, while there were almost no transactions for nickel from Russia during the afternoon trading hours. After downstream producers halted production, traders also began to close for holiday, resulting in limited supply and quiet transactions in the market.