SHANGHAI, Mar. 6 (SMM) -- During Monday's Asian trading hours, LME nickel prices slipped to hit a low at USD 19,181/mt after opening at USD 19,600/mt as of 5:20 pm, since Chinese Premier Wen Jiabao cut 2012 economic growth target to 7.5%, which is lower than 8% in the previous weight years. In addition, due to ample supply and sluggish demand in Asian, LME nickel prices were under sell-offs pressure, and were weighed below 5-day moving average.
In the Shanghai nickel spot market, mainstream traded prices of nickel from Jinchuan Group were between RMB 138,200-138,500/mt, and mainstream traded prices of nickel from Russia were between RMB 137,700-137,800/mt during the morning trading hours. When LME nickel prices dipped during the afternoon trading hours, Jinchuan nickel prices fell from RMB 138,500/mt to RMB 137,600-137,700/mt, and Russian nickel fell to RMB 137,200-137,300/mt. Market players were waiting for price adjustment from Jinchuan Group, with lackluster demand and muted transactions reported.
Based on result of an SMM survey on market sentiment, 20% market players predict that LME nickel prices will rebound, believing that negative impact from the european debt crisis is waning, and dip-buying will support LME nickel prices to rebound to certain extent.
50% market players expect that LME nickel prices shall remain cautious and will continue to fluctuate before outcome of the US non-farm employment data due out on Friday.
The remaining 30% market players expect that LME nickel prices face downward risks in this coming week. Global economic condition is still not optimistic, weighing on base metal demand. In addition, economic indicators from the US are mixed, and the US dollar rebounded robustly, exerting sell-off pressure on LME nickel prices. Therefore, LME nickel prices may fall further after slipping below all moving averages.