SMM Nickel Weekly Price Review and Forecast (Jan. 19-23, 2015)

SHANGHAI, Jan. 19 (SMM) – The average price of SMM #1 refined nickel shed RMB 2,070/mt from a week ago to RMB 107,380/mt last week. Tight supply allowed nickel prices in China to fall slower than LME nickel. Trading was brisk. Nickel for delivery in February 2015 on the Wuxi electronic trading outperforms the contracts behind it, indicating firmness in spot market. Russian nickel was in shortage in China, helping narrow its price spread with Jinchuan nickel to RMB 100/mt from RMB 200/mt. More Russian nickel will flow into Chinese market at the end of the month, which will alleviate its shortfall. Jinchuan Group adjusted nickel prices three times to close the week down RMB 3,500/mt at RMB 107,500/mt.

 

Nickel supply in China remains tight as Jinchuan Group has cut shipments. Should LME nickel continue to fall, spot nickel prices in domestic market will fall slower than LME nickel, which will allow spot premiums over the most active nickel contract on Wuxi electronic trading to continue rising. Spot nickel prices in domestic market are expected between RMB 106,000-109,000/mt this week.