SMM Nickel Market Daily Review (2015-5-25)

Published: May 26, 2015 09:29 (GMT+8)

Save

SMM #1 nickel prices were between RMB 94,700-98,800/mt.

SHANGHAI, May 26 (SMM) – SMM #1 nickel prices were between RMB 94,700-98,800/mt. Jinchuan Group did not adjust prices as nickel prices dropped slightly then leveled out in the morning. Traders held back goods, leading to tight Jinchuan nickel supply. Downstream buyers turned to Sumitomo and Norwegian nickel, with premiums of Russian nickel largely unchanged. Trading turned brisk, with traded prices between RMB 94,800-98,800/mt. Traders were unwilling to sell in the afternoon, and premiums for Jinchuan nickel rose slightly on tight supply. Russian nickel inventories also fell noticeably. Some large traders held Russian nickel inventories in bonded zone, but traders were unwilling to purchase at high prices. Downstream buyers purchased as needed, with trading muted and traded prices between RMB 94,900-99,000/mt.

SMM surveyed 30 market players to find that 6 are bullish toward nickel prices this week, 15 are neutral and 9 are bearish.

The 20% optimistic think LME nickel prices will rise to USD 12,900-13,100/mt. China’s stimulus measures will boost domestic economy, allowing nickel prices to rally. A large number of longs enter the market. Growing demand for nickel ore also supported nickel prices. SHFE 1507 nickel contract prices will rebound to RMB 100,000-102,000/mt.

50% are neutral, believing LME nickel prices will move between USD 12,600-12,900/mt. The US dollar index rebounded on improving economic indicators from the US, weighing on base metals prices. The release of domestic NPI capacity will also weigh on nickel prices. But any downward room is limited as demand grows. Meanwhile, Jinchuan Group held back goods at lower prices. SHEF 1507 nickel contract prices will fluctuate between RMB 97,000-100,000/mt.

The 30% pessimistic ones see LME nickel prices falling to USD 12,500-12,600/mt this week. A strengthening US dollar index pushed down base metals prices. Soft domestic demand, combined with the release of NPI capacity will put pressure on nickel prices. A large inflow of imported nickel expected will pull down spot premiums. SHFE 1507 nickel contract prices should fall to RMB 95,000-97,000/mt.

nickel prices

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

13 hours ago

KGHM and South32 launch US$725m Sierra Gorda expansion, lifting copper capacity 26%

KGHM and South32 have broken ground on a fourth grinding line at the Sierra Gorda copper-molybdenum mine in Chile's Atacama region. The US$725 million expansion runs for three years from January 2027, with completion by late 2029 and full output in H2 2030. Ore processing capacity rises 26%, from 131,000 tonnes per day to 165,000 tpd. Annual copper output is projected to climb from 165,000 tonnes in 2025 to 195,000 tonnes, with 6,000 tonnes of molybdenum, 58,000 ounces of gold and 1.7 million ounces of silver as by-products. The project creates over 900 direct jobs and is funded from operating cash flow and debt. Unit operating costs are expected to fall about 10%.

13 hours ago

14 hours ago

Emerita Extends Final Review of Iberian Belt West PFS, Release Expected in Coming Weeks

Emerita Resources has provided an update on the Preliminary Feasibility Study (PFS) for its Iberian Belt West polymetallic project in Spain, saying the study is well advanced but remains under final technical review. The company said the review process has been expanded to include additional technical and quality-assurance oversight before publication. As a result, Emerita now expects the PFS to be released in the coming weeks rather than within the previously indicated timeframe. Iberian Belt West hosts copper, zinc, lead, gold and silver mineralization and is one of Emerita’s principal development-stage assets in Spain. The PFS is expected to provide updated detail on the proposed mine plan, processing configuration, capital requirements, operating costs and project economics. Emerita said the additional review work is intended to ensure consistency and completeness across the technical disciplines contributing to the study before it is finalized. The company did not announce a revised specific publication date, and no new production, capital or economic figures were disclosed in the latest update. The extended review delays the next major technical milestone for Iberian Belt West, but the company continues to indicate that the PFS is nearing completion. For the copper market, the significance of the study will depend on the production profile and project economics ultimately disclosed, particularly the contribution of copper relative to the project’s other payable metals. Attention will therefore remain on the timing of the PFS release and whether the final study materially changes the project’s development outlook.

14 hours ago

Cascadia Intersects 75.55 m at 1.19% Cu at Carmacks Copper-Gold Project

Cascadia Minerals has reported additional drill results from its 2026 exploration programme at the Carmacks copper-gold project in Yukon, Canada, with new step-out drilling extending mineralization at Zone 2000S beyond the boundaries of the existing Mineral Resource. Drill hole CD-26-058 returned 75.55 metres grading 1.19% copper, 0.97 g/t gold, 10.4 g/t silver and 335 ppm molybdenum, equivalent to 2.18% copper-equivalent. The interval included 48.66 metres grading 1.61% copper, 1.39 g/t gold, 15.1 g/t silver and 475 ppm molybdenum, equivalent to 3.03% CuEq. Within the same hole, a higher-grade interval of 14.50 metres returned 2.30% copper, 2.68 g/t gold, 29.5 g/t silver and 1,015 ppm molybdenum, equivalent to 5.08% CuEq. A second hole, CD-26-059, intersected 93.99 metres grading 0.96% copper, 0.70 g/t gold, 4.6 g/t silver and 919 ppm molybdenum, equivalent to 1.94% CuEq. This included 63.97 metres at 1.26% copper, 0.96 g/t gold, 6.3 g/t silver and 1,049 ppm molybdenum, equivalent to 2.52% CuEq. Cascadia said the latest results continue to expand mineralization at Zone 2000S beyond the limits of the current Mineral Resource and highlight the higher-grade nature of the extension. The reported drill intervals represent drilled thicknesses, with true widths estimated at approximately 60–70%. The latest step-out results indicate that copper-gold mineralization at Zone 2000S extends beyond the boundaries of the current Carmacks Mineral Resource. The broad intervals and higher-grade internal zones could support future resource expansion if additional drilling confirms continuity. However, the new intersections have not yet been incorporated into an updated Mineral Resource Estimate, meaning their ultimate impact on project scale and mine planning remains to be determined.

14 hours ago