SHANGHAI, Apr. 9 (SMM) - In Shanghai, Jinchuan nickel prices were between RMB 112,900-113,100/mt on Monday, while Russian nickel prices were between RMB 112,000-112,200/mt.As LME nickel prices rose, Jinchuan quotes were raised to RMB 113,200/mt, and Russian nickel prices also inched up to RMB 112,300/mt. Some traders believing nickel prices had fallen to a low level and will rise in the foreseeable future replenished stocks modestly, with transactions brisk.
According to a recent SMM survey, 60% of market players believe nickel prices should continue to fall and test USD 15,900/mt. They are pessimistic due to the sluggish downstream market. Over the past month, prices for #300 stainless steel continued to plummet by RMB 100-500/mt, with prices for #304 hot rolled coil (3mm) and cold rolled coil (2mm) dropped from RMB 16,600-17,000/mt and RMB 17,800-18,000/mt a month ago, to RMB 16,500-16,700/mt and RMB 17,300-17,500/mt, respectively. Transactions for #300 stainless steel were extremely quiet in March, and prices will fall further due to oversupply. According to downstream enterprises, local detailed regulations to the property market will continue to push down stainless steel market. Besides, despite negative news from Cyprus eased recently, the pessimistic statement by European central bank President weighed down investor appetite for risk. The disappointing US non-farm employment data dragged down the US dollar index, but the index should continue to strengthen, and will pull down LME nickel prices.
The remaining 40% market players believe nickel prices should fluctuate between USD 15,950-16,250/mt this week. Despite the fact that current news is negative, they believe nickel prices have fallen to low levels, and will fluctuate in the foreseeable future. The US Federal Reserve will announce its minute for the monetary policy and March retail sales data, which will likely change market sentiment. Many market players chose to remain cautious before the news is released. LME nickel prices should remain fluctuating in a narrow band.