SMM Nickel Weekly Price Review and Forecast (Mar. 9-13, 2015)

SHANGHAI, Mar. 10 (SMM) – Nickel supply in China tightened, but prices did not take impetus therefrom. SMM #1 refined nickel averaged RMB 103,730/mt last week, down by USD 2,390/mt on a weekly basis. A majority of downstream producers and traders restarted operation and completed post-holiday stockpiling last week. Most producers only built raw material stocks normally, so orders did not increase. Jinchuan Group cut price offers once last week by RMB 1,000/mt to RMB 105,000/mt.

The shutdown of NPI producers in Shandong’s Linyi buoyed nickel prices last week, but high LME nickel stocks mean nickel market is still under oversupply pressure. As such, LME nickel prices are likely to stay weak at USD 13,600-14,000/mt.