LME Nickel to Drop Further This Week, SMM Predicts

Zhongwei shares issued an announcement last night that, in view of the company's continued optimism in the high nickel matte recovered from nickel laterite smelting, its wholly-owned subsidiary Zhongwei Hong Kong New Energy reached a supplementary agreement with RIGQUEZA to make additional investments in the joint venture PT.ZhongTsing New Energy. The two parties agreed to build a new laterite smelting project in Indonesia (Phase II) with an annual production capacity of 30,000 m of high nickel matte in metal content on top of Phase I project.

The current tightness of NPI, coupled with the upward trend in cost-end prices (mainly rising electricity prices) and the reduction in NPI output caused by power rationing, has made the problem of NPI shortage more difficult to solve.

The spokesman of the 19th CPC National Congress will hold a press conference today.

EIA’s crude oil inventory posted the biggest declines, and losses in NYMEX crude oil narrowed.

Nickel producers in Shandong’s Linyi are required to cut output by 50% in the following 4 months, which is more significantly than expected.

Base metals rose due to expectations that China’s economy is growing steadily and progress of US tax reform.

LME nickel dropped overnight, and is expected to fall further today.

SHFE 1801 nickel opened at RMB 84,800/mt today and rose to RMB 85,860/mt.

Anthony Scaramucci has been removed as White House communications director, pushing down the US dollar to 92.767.

US Q2 GDP rebounded to 2.6%, but salary growth hit a 2-year low, leaving the US dollar weak.