SMM Nickel Market Morning Review (2013-7-26)

SHANGHAI, Jul. 26 (SMM) – LME nickel prices overnight opened at USD 14,325/mt, with the high end of the price range USD 14,335/mt, and finding support at USD 14,117/mt. Finally, LME nickel prices closed at USD 14,157/mt, down USD 165/mt from the previous trading day. Trading volumes decreased by 848 lots, to 2,586 lots, and total positions decreased by 814 lots, to 122,649 lots. Inventories grew by 162 mt, to 200,010 mt.

Although US June durable goods orders, the number of initial jobless claims last week and EU industry growth were all better than expectations, which pushed down the US dollar index to 81.7, nickel and aluminum prices were not boosted, with other base metals performance better. LME nickel prices were boosted by China’s NPI prices, but still met resistance at USD 14,500/mt.

In Shanghai, transactions did not improve and were mainly made among traders. #1 nickel prices were between RMB 98,800-99,900/mt in the morning. Jinchuan did not adjust ex-works nickel prices as LME nickel prices overnight closed up USD 200/mt. But as LME nickel prices soared in the afternoon, and as traders see prices rising to USD 14,500/mt, Jinchuan nickel prices surged to RMB 100,000/mt, touching as high as RMB 100,200/mt.

LME nickel prices opened at USD 14,152/mt, and will fluctuate between USD 14,100-14,400/mt today, and spot nickel prices in Shanghai are expected to move between RMB 97,800-98,900/mt.