SHANGHAI, Feb.17 (SMM) -- During Thursday’s Asian trading hours, LME nickel prices were weighed down as data showed that Q4 GDP in the euro zone contracted for the first time since 2009. As of 3:00 pm, LME nickel prices fell below USD 20,000/mt and are expected to fall further. During the European and New York Trading hours, LME nickel prices met strong resistance, but still received strong support at USD 20,000/mt. In addition, the daily RSI suggested overselling at LME nickel market, and it is expected that LME nickel prices will fall slower after breaking through USD 20,000/mt if no solid news is available in the short term. SMM expects that LME nickel prices may fluctuate between USD 19,900-21,000/mt and may fall to USD 19,500/mt if breaking through USD 20,000/mt.
On Thursday, Jinchuan Group cut ex-works nickel prices by RMB 3,000/mt, to RMB 139,000/mt. In China’s nickel spot market, mainstream traded prices of nickel from Jinchuan Group were between RMB 141,000-141,500/mt, and mainstream traded prices of nickel from Russia were between RMB 140,200-140,500/mt during the morning trading hours. After Jinchuan Group cut its ex-works nickel prices, mainstream traded prices of nickel from Jinchuan Group were around RMB 140,000/mt, and mainstream traded prices of nickel from Russia were around RMB 139,000/mt. Bearish sentiment grew along with negative news from the euro zone, so buyers’ willingness to replenish stocks was down, leading to decline in trading volumes. Amid quiet trading sentiment, some traders cut offers to promote sales, so a small amount of nickel from Jinchuan Group was traded at RMB 139,500/mt.