SHANGHAI, Apr. 14 (SMM) – SHFE nickel prices also met resistance at the 5-day moving average and stayed at RMB 94,000-94,500/mt last week, with the low-end price at RMB 93,180/mt. Trading volumes declined to 520,000 lots, while positions grew to 102,000.
SMM # 1 refined nickel traded at an average price of RMB 96,300/mt last week, down by RMB 1,370/mt on a weekly basis. Spot nickel prices slumped as supply of imported nickel continued to grow. Jinchuan Group was forced to cut price offers. Meanwhile, downstream buyers purchased in limited amounts. Prices of Jinchuan nickel dropped RMB 4,000/mt to RMB 95,500/mt last week after the company adjusted prices four times.
Nickel inventories in bonded zones tumbled with imported nickel flooding into China’s spot markets. As profits on nickel imports expanded, nickel imports may continue to grow. Spot nickel prices in China’s market are likely to stay low at RMB 92,000-97,000/mt this week.