SHANGHAI, Mar.12 (SMM) -- During the morning trading hours in the Shanghai nickel spot market, mainstream traded prices of nickel from Jinchuan Group were between RMB 117,600-117,900/mt, and mainstream traded prices of nickel from Russia were between RMB 116,700-116,900/mt. As transactions were sluggish, offers of Jinchuan nickel fell to RMB 117,700, and offers of Russian nickel to RMB 116,700/mt during the afternoon trading hours. The absence of arbitrage opportunity made transactions sluggish in spot market.
According to SMM survey on market sentiment, 70% market players believe that LME nickel prices will consolidate around exiting level and will move between USD 16,500-16,700/mt. They hold that although the US dollar strengthened on upbeat economic data from the US, LME nickel prices will move less sensitive towards impact of US dollar in the future.
20% market players project that LME nickel prices will LME nickel prices will advance to hit USD 16,700/mt. Stainless steel inventories in Wuxi fell by 2.99% MoM to 189,808 mt, with stocks of #300 stainless steel down 0.81%, #400 stainless steel down 7.62% and #200 stainless steel down 13.79%. Although stainless steel pries remained stable, the improving transactions eased pessimistic sentiment. This will help boost demand for nickel, lending support for nickel prices. In addition, technical indicators suggest that LME nickel prices are expected to rebound slightly.
The remaining 10% market players expect that LME nickel prices may fall to USD 16,450/mt. The pessimistic players hold that the Shanghai Composite Index may fall below 2300 points after tumbling for three consecutive days. In addition, the US dollar rallied, which will weigh on nickel prices. If economic data in the US improve further, market expectation over ending of QE will grow, which will drag down nickel prices as well.