SHANGHAI, Feb.7 (SMM) -- On Monday, a technical correction is possible for LME nickel price after last Friday’s rally. During Monday’s European trading hours, the euro zone will announce February Sentix investor confidence index and Germany’s December seasonally adjusted manufacture orders, which will affect base metal movement.
In the Shanghai nickel spot market, mainstream traded prices of nickel from Jinchuan Group were between RMB 144,500-145,000/mt, and mainstream traded prices of nickel from Russia were between RMB 143,500-143,600/mt during the morning trading hours. As LME nickel prices slipped to certain extent, mainstream traded prices of nickel from Jinchuan Group were between RMB 144,300-144,800/mt range, and mainstream traded prices of nickel from Russia were between RMB 143,000-145,500/mt during the afternoon trading hours. Trading sentiment remained sluggish, with limited transactions between traders and limited demand from downstream consumers.
Based on result of an SMM survey on market sentiment, 40% market players believe that LME nickel prices will continue to advance in this coming week, as last week’s robust non-farm employment data and positive PMI from the US indicate that the US manufacture sector is recovering. Apart from that, the UK and Australia will hold interest rate meeting, and it is expected possible interest rate cut will be adopted, which will boost market sentiment in the short term and will push LME nickel prices higher.
Another 40% market players expect that LME nickel prices will not fluctuate much, and a technical correction is possible for LME nickel price after last Friday’s rally. As the is no solid news and no progress for Greek debt negotiation, LME nickel prices are tend to remain fluctuation trend in this coming week.
The remaining market players hold that LME nickel and other risk assets will be dampened if the euro continues to be weak, despite of positive economic data from the US in the short term.