SHANGHAI, Feb. 20 -- SMM expects LME nickel prices will test USD 22,450/mt if able to break through resistance at USD 22,000/mt, and will be supported at USD 21,100/mt and at the 10-day moving average.
In the Shanghai nickel spot market, a small number of traders already began to replenish stocks last week. Since LME nickel prices are expected to rise, the willingness by downstream enterprises to purchase raw materials will grow and boost transactions. Last week’s spot nickel prices were below LME nickel prices and the price spread between domestic and LME nickel prices expanded last week, but should narrow if downstream demand improves in the coming week. SMM expects spot nickel prices will continue to follow LME nickel price trends and will move between RMB 140,000-155,000/mt in the coming week.