SHANGHAI, Oct. 15 (SMM) – In Shanghai, Jinchuan raised nickel prices by RMB 400/mt, to RMB 97,700/mt. SMM #1 nickel prices were RMB 96,500-97,500/mt, with transactions mainly made in the morning session. Traders held back goods in the afternoon due to rising LME nickel prices.
SMM undertook a survey of 36 market players and found 39% believe LME nickel prices will rebound to USD 14,000-14,200/mt. LME nickel prices rose last Thursday and closed at USD 13,907/mt last Friday. As US debt ceiling issue moves toward resolving, US government is expected to reopen this week. China’s PPI in September dropped 1.3%, with declines down 0.5% on the MoM basis, but improved for the fourth consecutive week. Improving domestic industry demand will give support to LME nickel prices. China’s GDP and fixed assets investment data to be released this week is also optimistic.
44% believe LME nickel prices will move between USD 13,600-14,000/mt. The market will avert risks before the US government reopens, and LME nickel price gains recently will unlikely sustain. Besides, if the US dollar index rebounds, LME nickel prices will likely fall.
17% think LME nickel prices will hover between USD 13,500-13,600/mt. LME nickel inventories remain high, and downstream demand did not improve, with cargo holders expected to selling goods to generate cash.