SHANGHAI, Jul. 2 (SMM) – Nickel prices on the SHFE have witnessed big volatility after rounds of speculation since its launch this March. Will Shanghai nickel price rally in July after recent sharp losses? 

“SHFE nickel is expected to bounce back in July, with V-shaped movement expected,” an analyst from Guosen Futures told SMM in latest interview. 

The analyst explained that shorts are not strong enough to continue pressuring nickel price as markets absorbed negative news.  

“Markets already absorbed possible impact from deliveries of Russia’s Norilsk nickel before the approval by the SHFE on June 30,” the analyst added. 

The approval of Russian nickel’s deliveries will take away worries over the shortage of deliverable brands on the exchange, and this will also grow spot supply against the backdrop of off-demand season in the stainless steel sector, which sent nickel down noticeably in recent days.   

Demand, on the other hand, is likely to improve with support from China’s pro-growth measures during the rest of the year, the analyst said. 

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