SMM Nickel Market Morning Review (2015-3-12)

SHANGHAI, Mar. 12 (SMM) – China’s January and February fixed asset investment increased 13.9% YoY, falling short of market expectations. Value added at China’s large scale industrials in January and February slumped, and consumer goods retail sales during January and February also fell sharply. Investment in China’s real estate sector slowed, with property sales down 15.8%. This means China’s economy slowed significantly. When combined with ongoing Greek crisis and rising US dollar index, base metals prices were pulled down. LME nickel prices opened at USD 14,050/mt overnight, and inched down to as low as USD 13,940/mt, but then rallied due to the entry of longs. During European trading hours, LME nickel prices soared and touched USD 14,210/mt. During US trading hours, LME nickel prices dropped back to USD 13,720/mt, and closed at USD 13,795/mt, down 1.88%. Trading volumes decreased 5,053 to 697 lots, and total positions increased 32 to 220,810. LME nickel inventories fell 420 to 432,480 mt.

LME nickel prices are expected to fall slightly today. Spot nickel prices in Shanghai will move between RMB 102,300-103,300/mt.