SHANGHAI, Mar. 4 (SMM) – In Shanghai, SMM #1 nickel prices were between RMB 93,400-94,400/mt. Jinchuan raised nickel prices by RMB 300/mt to RMB 94,800/mt. Transactions were mainly made for Russian nickel, with prices between RMB 93,100-93,300/mt. Jinchuan was unwilling to move goods due to sluggish prices, and some steel plants purchased Russian nickel modestly.
SMM surveyed 36 market players and found that 64% believe LME nickel prices will continue to rise this week, but meeting resistance at USD 15,000/mt, and finding support at USD 14,700/mt. Indonesian ban on unprocessed ore continues to affect the market, and ore inventories at ports fell further, with market optimism growing. The US dollar index will remain weak before the announcement of US non-farm employment data this Friday, which will give support to nickel prices. European and US investors will likely push China’s shorts out of the market.
36% believe LME nickel prices will hover between USD 14,400-14,700/mt. China’s sluggish manufacturing and political turmoil in Ukraine will raise financial market volatility.