SHANGHAI, Apr. 10 (SMM) -- The LME market was closed on Monday. In the Shanghai nickel spot market, mainstream traded prices of nickel from Jinchuan Group were in the RMB 132,800-133,000/mt range, and mainstream traded prices of nickel from Russia were in the RMB 131,300-131,500/mt range. Market views were mixed. Some downstream consumers and traders replenished stocks in anticipation of higher prices, but some downstream consumers remained cautious toward purchases in the absence of direction from the LME nickel market. In general, transaction volumes grew slightly boosted by restocking activities, but demand remained weak.
According to a recent SMM survey, 40% of market players believe LME nickel prices will continue to rebound this week. Some traders believe transaction volumes of stainless steel will grow in April based on past experiences, and LME nickel prices will rise to USD 17,800/mt in response, with prices expected to test USD 18,500/mt.
30% of market players believe LME nickel prices will fall back after a brief rebound. Last week, the spread between the yields on Spanish 10-year government bonds and comparable German bonds was up 10 basis points, setting a record high since the end of November 2011 and spurring investor concerns that the Spanish government would be unable to reduce its budget deficit and could not consolidate its banking sector as well, which has affected Spanish debt issuance plans and caused markets to be concerned that Spain may seek for the bailout following Greece, Ireland and Portugal. In addition, US nonfarm payrolls were also disappointing. As a result, LME nickel prices lack upward momentum, and some traders even believe LME nickel prices may again test the previous low of USD 17,200/mt this week.
The remaining 30% believe LME nickel prices will continue to fluctuate this week, since the US economy is still recovering despite weaker-than-expected nonfarm payrolls.