SMM Nickel Price Forecast (Apr.22-26, 2013)

SHANGHAI, Apr. 22 (SMM) – On Friday, Jinchuan Group cut ex-works prices for refined nickel to RMB 106,000/mt (large panel), and to RMB 107,200/mt (small in barrel), a cut of RMB 6,500/mt. In the Shanghai nickel spot market, #1 nickel averaged RMB 117,740/mt, down RMB 4,300/mt. Last week, domestic spot nickel prices were extremely volatile, with price changing by RMB 1,000-2,000/mt within a single day. Market sentiment last week was mixed. Some market players, who were cautiously optimistic chose to purchase goods after prices appeared to bottom out. However, as LME nickel continued to fall below major support levels, those producers which began to purchase suffered losses. Other more pessimistic market players, halted purchases given continuous price declines.