SMM Nickel Weekly Price Review and Forecast (Apr. 7-10, 2015)

SHANGHAI, Apr. 7 (SMM) – SHFE 1507 nickel contract presented sharp movements last week, with low-end price at RMB 91,600/mt. The prices staged a rally late last week to rise above the 5-day moving average and then stayed at RMB 97,000-98,000/mt. Trading volumes reached 670,000 lots and positions grew to 82,000.

In Chinese market, SMM #1 refined nickel prices fell by RMB 6,320/mt to RMB 97,670/mt. Jinchuan Group remained reluctant to sell, so the price gap between Jinchuan nickel and imported nickel was still large. Russian nickel was offered at discounts of RMB 1,500/mt to Jinchuan nickel. Price offers from Jinchuan Group fell by RMB 4,500/mt to RMB 99,500/mt following two price adjustments.

Supply of imported nickel may decrease this week, but refined nickel prices remain on a downward track. Now that ex-works prices from Jinchuan Group have fallen below RMB 100,000/mt, any rise in spot market will be limited. SMM expects spot nickel prices to be RMB 98,000-101,000/mt this week.