Overview of LME Nickel Market during Chinese National Day Holiday

SHANGHAI, Oct. 8 (SMM) – LME nickel prices bottomed than rallied during the Chinese National Day holiday. LME nickel prices plunged below USD 16,000/mt October 1, dipping to as low as USD 15,869/mt. LME nickel inventories grew 8,208 mt to 364,200 mt, up 2.3%.

Indonesia's ban on the export of unprocessed ore effective January 12 triggered concerns over nickel ore shortages. This pushed up LME nickel prices to surged from USD 13,831/mt to USD 21,625/mt, up 56%. But global nickel ore surplus, combined with a strengthening US dollar index, pushed LME nickel prices to slump below USD 17,700/mt. LME nickel prices fell to USD 15,869/mt then rallied to USD 16,800/mt.
   
Major economic indicators from the US during the holiday were upbeat, while those from the euro zone were sluggish. The US dollar index thus soared to 86.8. The number of US non-farm employment rose from 180,000 to 248,000 in September, and unemployment rate dropped from 6.1% to 5.9%. Markit's US September manufacturing index slid from 57.9 to 57.5, and ISM manufacturing PMI was down from 59 to 56.6.
  
September PMIs from many euro zone countries were lackluster. Germany's September PMI fell to 49.9 due to geopolitical factor.

China's official PMI in September remains flat at 51.1.