Metals News
SMM Nickel Weekly Review and Forecast ( 24-28 Jun. 2013)
price review forecast
05:05PM
Jun 24,2013
Source:SMM

SHANGHAI, Jun. 24 (SMM) - On Tuesday, Jinchuan Group cut ex-works prices for refined nickel to RMB 102,000/mt (large panel), and to RMB 103,200/mt (small in barrel), both down RMB 4,500/mt. In the Shanghai nickel spot market, #1 nickel averaged RMB 99,480/mt, down RMB 2,370/mt from a week earlier. Spot nickel prices retreated below RMB 100,000/mt in response to sharp declines in electronic traded prices. The price quoted by Jinchuan Group on Thursday was RMB 99,000/mt, and was the first time since April 2009 that Jinchuan nickel prices were below RMB 100,000/mt. At that time, LME nickel prices were around USD 10,900/mt, but current LME nickel prices are around USD 14,000/mt, and would indicate that China’s domestic nickel prices are feeling the effect of a long-term supply surplus and NPI market. Continuous price declines left downstream producers on the sidelines last week, but arbitrage opportunities in electronic trading markets still provided trading opportunities. Overall trading was still quiet, however.   

 
Russian nickel will be preferred by markets due to its price advantage. Once prices fell below RMB 100,000/mt, bearish sentiment dominated markets, with prices expected to remain weak in the coming week. 
 
SMM Nickel Weekly Review and Forecast
LME nickel prices
China’s domestic nickel prices
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