According to SMM survey, approximately 50% of market players expect prices to rise this week, as any downward room of LME nickel will be limited following the absorption of negative news from the euro zone. European Central Week will begin the second round of long term refinancing operation (LTRO) this week, while the Fed found little backing for a new round of quantitative easing. Hence, the euro against the dollar is expected to remain high. In domestic spot market, nickel prices usually rise during the time of the year in past years. At present, nickel prices are low, leaving possibility to advance. Meanwhile, downstream producers need to replenish goods for production. Demand improvement will drive up nickel prices. In this context, those market players believe that nickel prices will sustain its rising trend for the foreseeable future after regaining its upward momentum.
Around 30% of market players believe, however, nickel prices will drop this week. Nickel price gains last week were due largely to the deal over Greek debt issues and rising stocks market in
The rest 20% expects nickel prices to fluctuate, with LME nickel prices around USD 20,000/mt due to the absent of no positive or negative news in the market.