Shanghai, May 8 (SMM) – On Monday, mainstream traded prices for Jinchuan nickel were RMB 130,500-130,800/mt in the Shanghai nickel market, and RMB 128,500-128,800/mt for Russian nickel. Due to the lack of direction from LME nickel market, cautious attitude dominated the market, with low trading reported.
According to a recent SMM survey of price movements this week, 70% market players expect nickel prices to weaken. The newly-elected French President has triggered market concerns over the outlook for the European debt issues by the two major powers in the region. Meanwhile, the data shows that voters in Greece favor the party who opposes the austerity plan, and this has also ignited market fears that the country may break up earlier promises made for international aid. In this scenario, the US dollar index opened stronger at 80, a sign of market risk aversion. Besides, LME nickel inventories grew 516 mt last Friday, and high inventories will also add downward pressures to nickel prices. Collectively, LME nickel prices will be weak for the foreseeable future.
Approximately 30% market players believe nickel prices will continue to fluctuate this week, as high nickel ore prices will support nickel prices. In early 2012, LME nickel prices tumbled to USD 17,134/mt due to the Greece debt issues, and the existing price is approaching to the mark. Coupled with improved economic conditions, markets should not be too pessimistic towards the outlook.