SMM Nickel Price Forecast (Apr. 15-19, 2013)

SHANGHAI, Apr. 15 (SMM) - On Tuesday, Jinchuan Group cut ex-works prices for refined nickel (large panel) by RMB 1,500/mt, to RMB 113,500/mt, while prices for nickel (small in barrels) were RMB 114,700/mt. In the Shanghai nickel spot market, #1 nickel averaged RMB 113,420/mt, down RMB 1,655/mt from a week earlier. In general, the LME nickel market fluctuated at the low end, so no major changes were seen in China’s domestic nickel markets. Trading among traders was also quiet due to the lack of arbitrage opportunities. Some downstream producers, however, entered the market, believing prices would soon begin to rebound.

Bargain hunters were active last week as some believed current prices may have bottomed out, and this aggressive buying will continue into the coming week.