SHANGHAI, Dec. 8 (SMM) – SMM surveyed 30 market players to find that 6 are bullish, 17 are neutral and 7 are bearish toward nickel prices this week.

The 20% optimistic ones see LME nickel move between USD 9,050-9,200/mt. European Central Bank lowered interest rate less than expected, weighing down the US dollar to 97. Chinese nickel smelters announced output cut plans, and inventories fell across LME and China’s spot markets, bonded warehouse and ports. NPI prices also rallied with nickel prices. Market confidence improved after LME nickel closed last week with gains. SHFE 1601 nickel is expected to return to RMB 70,500-73,000/mt.

See SMM Forecast Please Click:LME Nickel to See Small Downward Room, SMM Expects

57% see LME nickel fluctuate between USD 8,900-9,050/mt. Less-than-expected interest rate cuts by the European Central Bank and output cuts at Chinese smelters boosted nickel prices. But China’s November CPI and PPI slated for release this week are not promising. Meanwhile, import business is active due to high Shanghai/LME nickel price ratio. There are also massive deliverable inventories. SHFE 1601 nickel should move between RMB 69,000-70,500/mt.

23% expect LME nickel to fall to USD 8,800/mt. The US dollar will gain ground due to optimistic economic indicators from the US, weighing on base metals. OPEC members decided to leave production at current levels, pushing down crude oil prices. When combined with large inflows of imported nickel, soft demand and sluggish stainless steel prices, nickel price should take a hit. SHFE 1601 nickel should drop to RMB 67,500-69,000/mt.