SHANGHAI, Jul. 21 (SMM) – The rumors of nickel stockpiling by China’s State Reserve Bureau (SRB) drove the September-delivery contract up to close at 87,870 yuan per tonne Jul. 21, a gain of 3.25%.
It was rumored since the beginning of this week that SRB will buy around 30,000 tonnes of nickel.
“In addition to this, a potential cut at nickel ore miners amid the sluggish nickel market should be also a driver behind today’s nickel price gain,” Shanghai Metals Market’s nickel analyst says.
Moreover, rising steel prices after the strengthening of environment protection inspections should also lend a support to stainless steel price, also favoring nickel prices, SMM adds.
“These positive factors are expected to buoy up the nickel market, and LME nickel will likely advance to $12,000 per tonne, but will face great resistance to climb to $12,500 per tonne,” SMM foresees.
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