SHANGHAI, Jun. 24 (SMM) – SMM #1 nickel prices were quoted between RMB 127,000-127,900/mt. Jinchuan lowered nickel prices by RMB 700/mt to RMB 127,800/mt. Spot transactions were made between RMB 126,900-128,100/mt and mainly made among traders.
SMM surveyed 36 market players and found that 14% believe LME nickel prices will rise to USD 18,600-19,200/mt. HSBC's June PMI was upbeat on Premier Li's statement that China's GDP growth for the year will be above 7.5%. Besides, other base metals prices are also strong. But given sluggish demand, any rebound will be limited.
53% believe LME nickel prices will hover between USD 18,400-18,700/mt. Due to the off-season and since end-users have built stocks, demand for nickel will be soft. But support from USD 18,400/mt will be strong due to ongoing Indonesia's ban on the export of unprocessed ore.
33% think LME nickel prices will fall to USD 18,000-18,400/mt this week. High inventories on the LME and soft demand will both weigh on nickel prices. When combined with the exodus of speculative capital from the LME nickel market, prices will face downward pressure.