SMM Nickel Weekly Price Review and Forecast (2-6 Dec. 2013)

SHANGHAI, Dec. 2 (SMM) – LME nickel prices came under more downward pressure during the week of 22-29 November, fluctuating below the 5-day moving averages and dipping to USD 13,274/mt, and with the support level falling from USD 13,500/mt to USD 13,300/mt. In the Shanghai nickel spot market, the average price for #1 nickel was RMB 94,030/mt, down RMB 1,150/mt. Jinchuan Group cut prices last week by a total of RMB 1,000/mt, to RMB 94,500/mt, but traded prices for Jinchuan nickel were down from RMB 95,000/mt in early week trading to RMB 93,600/mt later in the week. Downstream producers made steel purchases on an as-needed basis, but some traders which had already met annual targets withdrew from the market. Tight month and year-end cash flows further compounded already thin trading.