SHANGHAI, Sept. 15 (SMM) – SMM #1 nickel prices were between RMB 77,100-78,200/mt. Discounts of Jinchuan nickel against the most actively traded contracts on the Wuxi electronic trading were RMB 200/mt in the morning. Traders bought proactively due to equipment breakdown at Jinchuan Group. Downstream buyers bought modestly amid ample supply, leaving trading muted and traded prices between RMB 77,000-77,800/mt. Nickel futures prices plunged in the afternoon, but downstream buying interest was low. Traders bought at lows but refrained from buying, with traded prices between RMB 76,500-77,200/mt.
SMM surveyed 30 industry insiders to find that 14 are neutral toward nickel price trends while 16 are bearish.
47% see LME nickel prices move between USD 10,000-10,300/mt. The likelihood of an interest rate hike by the Fed in September decreased, weighing on the US dollar. A string of stimulus measures from China is expected to help Chinese economy stabilize, bolstering base metals. However, a weakening Shanghai Composite Index will depress the market. SHFE 1601 nickel prices are expected to hover between RMB 78,000-79,500/mt.
The 53% bearish ones think LME nickel price will fall to USD 97,000-10,000/mt. despite upbeat economic indicators from China, sluggish economies worldwide undermined the likelihood of the an interest rate hike by the Fed in September, leaving investors cautious. China’s fresh economic indicators are by and large sluggish. The property market is still languishing. The Shanghai Composite Index fell, meaning weak market confidence. SHFE 1601 nickel contract prices should fall to RMB 77,000-78,000/mt.