SHANGHAI, May 3 (SMM) -- On Wednesday, mainstream traded prices of Jinchuan nickel were between RMB 132,000-132,200/mt in the morning session, while mainstream Russian nickel prices were between RMB 130,000-130,300/mt. Transactions were brisk as the market was building stocks following the May Day holiday, causing traders to raise their quotes. In the afternoon, , mainstream traded prices of Jinchuan nickel were between RMB 132,500-132,700/mt, and mainstream Russian nickel prices were between RMB 130,500-130,700/mt.
According to an SMM survey, 60% market players believe nickel prices should fall further in the short term due mainly to pallid demand. Demand for nickel will not improve in May as trading volumes did not increase, which is also reflected in growing inventories. Besides, eurozone PMI fell whilst employment rate in Italy and Germany rose, and US economic growth is still pessimistic despite positive PMI. In this context, the US dollar index rebounded, and those traders are pessimistic, believing nickel prices should not improve until September.
30% market players believe LME nickel prices should remain fluctuating this week. With other metals prices brisk, LME nickel prices continued to plummet during the May Day holiday, so they believe LME nickel prices should rebound this week.
Only 10% market players are optimistic, believing China's positive PMI should bring opportunities to stainless steel enterprises. Nickel downstream demand should turn around in May, so prices are expected to rebound.