SHANGHAI, Jul. 9 (SMM) – In Shanghai, nickel prices fell with LME nickel prices, with Jinchuan prices down to RMB 95,300-95,500/mt, and Russian nickel prices dropping to as low as RMB 94,200-94,500/mt. Although some downstream buyers replenished stocks due to falling prices, transactions were still muted.
70% market players are pessimistic, believing LME nickel prices will fall further to USD 13,200/mt, or as low as USD 13,000/mt. They based their opinion on continuously rising US dollar index and the weakening domestic stocks markets. US June non-farm employment increased by 195,000, pushing up the US dollar index to a record high in three years, and US 10-year government bonds rose to a 2-year high of 2.74%, increasing expectations of an end to QE, and weighing down nickel prices. The sluggish stocks markets reflected a weak domestic market, and when combined with the low demand season, transactions were muted.
30% market players lack confidence, seeing nickel prices fluctuating steadily between USD 13,400-13,800/mt. They believe domestic nickel ore and NPI prices have bottomed, and will unlikely fall. Besides, stainless steel prices also bottomed out, so nickel prices will hover in the interim at low levels.