SMM Nickel Weekly Price Review and Forecast (Oct. 20-24, 2014)

SHANGHAI, Oct. 21 (SMM) – In China’s spot nickel market, the average price for SMM #1 refined nickel tumbled RMB 3,850/mt on a weekly basis to RMB 110,400/mt last week. Jinchuan Group cut nickel prices three times by a total of RMB 8,000/mt to close the week at RMB 106,500/mt. Traders were anxious to sell out of bearishness. Inquiries from downstream producers increased after nickel prices plunged, but trading was thin. Supply of Russian nickel was tight. Downstream producers purchased Russian nickel at RMB 200/mt below Jinchuan nickel, while traders bought Russian nickel at RMB 500/mt below Jinchuan nickel.   

 

This coming week, nickel prices in China’s spot market are expected to follow LME nickel down to RMB 104,500-112,000/mt.