SHANGHAI, Jul. 16 (SMM) – Despite LME nickel prices closed with gains of USD 113/mt last Friday, spot prices in China were level with last Friday in the morning trading. #1 nickel prices were between RMB 96,200-97,300/mt, down RMB 50/mt. Jinchuan nickel lowered nickel prices by RMB 4,500/mt, to RMB 97,500/mt. In the afternoon, transactions were made in a RMB 96,000-97,500/mt range. Mainstream Russian nickel prices were around RMB 96,300/mt, and Jinchuan nickel prices were around RMB 97,300/mt, with ample supply of South African nickel.

According to a most recent SMM survey, 60% market participants believe LME nickel prices will hover between USD 13,600-13,800/mt.

20% believe LME nickel prices will rebound to USD 13,800-14,000/mt. The market is still absorbing Ben Bernanke's statement supportive for easing policies, and sluggish data from China will not affect the market significantly.

20% believe LME nickel prices will dip to USD 13,200-13,500/mt. They think China's central bank will likely implement prudent monetary policies as inflation rate rose, which will cause liquidity tightness again. Besides, a strong US dollar index will weigh down base metals. So LME nickel prices are expected to fall.