SMM Daily Review - 2012/2/27 Nickel Market-Shanghai Metals Market

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SMM Daily Review - 2012/2/27 Nickel Market

SMM Insight 09:11:16AM Feb 28, 2012 Source:SMM

SHANGHAI, Feb. 28 (SMM) – In the Shanghai nickel market, mainstream traded prices of Jinchuan nickel in the morning business were between RMB 139,800-140,000/mt, and RMB 139,000-139,500/mt for Russian nickel. During the afternoon business, spot nickel prices were little changed due to limited changes in the LME nickel market. Last Friday, downstream producers and traders built some stocks, so purchasing demand on Monday was low, resulting in low trading activity.

 

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 China. The positive impact on nickel prices from new aid for Greek debt issues will not support nickel price gains this week. Moreover, stocks prices in China will stage profit-taking at around 2,450 points due to overbought, and stocks will lose its further rising momentum in response. In addition, the European debt issues remain unresolved, and the global economic recovery is depressing. Hence, LME nickel prices will retrace its weak momentum.

 

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.

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#1 Refined Cu
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49430.0
-170.0
(-0.34%)
Yangshan Copper Premium(Bill of Lading)
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51.5
0.0
(0.00%)
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50.5
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73.5
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SMM Daily Review - 2012/2/27 Nickel Market

SMM Insight 09:11:16AM Feb 28, 2012 Source:SMM

SHANGHAI, Feb. 28 (SMM) – In the Shanghai nickel market, mainstream traded prices of Jinchuan nickel in the morning business were between RMB 139,800-140,000/mt, and RMB 139,000-139,500/mt for Russian nickel. During the afternoon business, spot nickel prices were little changed due to limited changes in the LME nickel market. Last Friday, downstream producers and traders built some stocks, so purchasing demand on Monday was low, resulting in low trading activity.

 

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 China. The positive impact on nickel prices from new aid for Greek debt issues will not support nickel price gains this week. Moreover, stocks prices in China will stage profit-taking at around 2,450 points due to overbought, and stocks will lose its further rising momentum in response. In addition, the European debt issues remain unresolved, and the global economic recovery is depressing. Hence, LME nickel prices will retrace its weak momentum.

 

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.