SHANGHAI, Oct. 9 (SMM) – In Shanghai, SMM #1 nickel prices were between RMB 96,600-97,700/mt in the morning. Trading of Jinchuan nickel at RMB 97,700/mt was brisk, and Russian nickel prices were around RMB 96,700/mt. As cash flow problems eased, transactions improved.
SMM surveyed 36 investors and found that 39% believe LME nickel prices will rise to USD 14,000-14,200/mt this week. US government shutdown and worries over US economy undermined expectations of QE3 wind-down this year, which weighed down the US dollar index and lent some support to LME nickel prices. Besides, both China’s official manufacturing and service PMIs in September were better than August, showing domestic consumption and demand improved, which will drive up LME nickel prices.
50% market players believe LME nickel prices will level out. The looming US debt crisis kept investors cautious, so LME nickel prices will unlikely rise.
11% investors see LME nickel prices falling to USD 13,500-13,600/mt. they think demand for LME nickel will not improve given steady NPI market, unless LME nickel prices drop to USD 13,200/mt.