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SMM Nickel Weekly Price Review and Forecast (Mar. 30-Apr. 3, 2015)
Mar 31, 2015 10:25CST
Source:SMM
SHFE 1507 nickel contract made its debut on March 27.
SHANGHAI, Mar. 31 (SMM) –SHFE 1507 nickel contract made its debut on March 27. Nickel prices varied greatly from brand to brand in the spot market, but nickel prices on the SHFE are undifferentiated by brand. Investors thus opened short positions moved aggressively, sending SHFE 1507 nickel contract down to RMB 100,650/mt. The contract rebounded slightly later before closing at RMB 101,080/mt. Trading volumes and positions totaled 28,860 lots and 14,364, respectively. 
 
SMM #1 refined nickel prices averaged RMB 103,990/mt last week, up RMB 350/mt from a week ago. Jinchuan nickel was in shortage, allowing its premiums over 1504 nickel contract on the Wuxi electronic trading to stay high. Russian nickel flooded into China’s spot market, causing it to trade at wide discounts over Jinchuan nickel. Downstream buyers favored Russia nickel as a result. Jinchuan Group adjusted prices twice to close last week flat at RMB 104,000/mt. 
 
This week will see more imported nickel flow into the Chinese market and more Jinchuan nickel being exported back to China. Hence, market prices will go down further, which will leave Jinchuan Group anxious to sell, thereby pushing down its premiums over 1504 contract on the Wuxi electronic trading. Spot nickel is expected to trade between RMB 99,000-103,500/mt.
 
SHFE nickel prices

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