SHANGHAI, Nov. 26 (SMM) – In Shanghai, transactions were muted and mainly made by plants. SMM #1 nickel prices were between RMB 94,100-95,000/mt, down RMB 150/mt. Russian nickel supply was tight, with Jinchuan nickel prices between RMB 94,900-95,000/mt. Trades were more brisk in the morning, with end-users actively purchasing goods.
SMM surveyed 36 market players and found that 17% believe LME nickel prices will rebound to break through USD 13,650/mt as prices have bottomed out. It was reported the State Reserves Bureau will build nickel reserves, and Indonesia's policy will also give support to nickel prices as 2014 nears.
50% market players believe LME nickel prices will move between USD 13,500-13,650/mt. They think due to tight credit loans in China, commodity prices will be dragged down. But Indonesia's ban on ore exports will lend strong support at USD 13,500/mt.
33% think LME nickel prices will fall below USD 13,500/mt to hit a new low. They believe the US Federal Reserve's policy meeting minutes hinted they will scale back QE3, when combined with positive US economic data, the US dollar index will rebound this week, weighing on nickel prices.