SMM Daily Review - 2012/3/14 Nickel Market

SHANGHAI, Mar. 15 (SMM) -- During Wednesday's Asian trading hours, the US dollar index continued to advance and hit a high at 80.43, weighing on LME nickel prices to move in a narrow band after a low open. Market widely expects that Greek bailout plan will be implemented on Thursday. In addition, Fitch raised Greek long-term domestic and foreign currency issuer default rating to B-, and adjusted short-term issuer default rating from C to B, with outlook stable, indicating rating agency’s recognition of Greece bailout plan. If Greece successfully implements bailout plan, LME nickel prices are expected to advance slightly.

In the Shanghai nickel spot market, Jinchuan Group raised ex-works nickel prices by RMB 3,000/mt, to RMB 138,000/mt. The price hike by Jinchuan Group stimulated downstream buying interest during the morning trading hours, with mainstream traded prices of Jinchuan nickel between RMB 138,000-138,500/mt, and mainstream traded prices of Russian nickel between RMB 137,500-137,800/mt. During the afternoon trading hours, trading sentiment turned quiet and trading volumes were also down when LME nickel prices fell. Some traders slightly lowered prices to promote sales, still failing to boost transactions.