SMM Nickel Market Morning Review (2015-6-1)

SHANGHAI, Jun.1(SMM) – US annualized Q1 growth shrank 0.7% on the QoQ basis, down sharply from the 0.2% growth of flash data. University of Michigan’s CCI in May hit a 6-month low of 90.7, but topped market expectations. China’s manufacturing and non-manufacturing PMIs in May, and HSBC’s May PMI for China will be released this morning. LME nickel prices opened at USD 12,855/mt last Friday, then fell USD 150/mt with SHFE nickel prices, touching as low as USD 12,650/mt. During European and US trading session, LME nickel prices reversed losses, but fell later on to as low as USD 12,560/mt, and closed at USD 12,600/mt, down 1.52%. Trading volumes increased 289 lots to 6,303 lots, and total positions decrease 295 to 228,843. LME nickel inventories were down 246 mt to 464,364 mt.

LME nickel prices are expected to remain weak today. SHFE 1507 nickel contract prices dropped RMB 1,430/mt last Friday evening. Spot nickel prices in Shanghai will move between RMB 93,300-98,800/mt today.