No Chinese Investors Bullish toward Nickel Prices This Week, SMM Survey

SHANGHAI, Jan. 5 (SMM) – SMM surveyed 30 market players to find that no one is bullish, 20 are neutral and 10 are bearish toward nickel prices this week.

The 67% neutral ones see LME nickel fluctuate between USD 8,700-8,850/mt. The US dollar index fell. Eurozone December manufacturing PMI hit a 20-month high. Operating rates at domestic high-grade NPI producers are low, with producers holding back goods. Nickel ore supplies decreased due to the monsoon season in the Philippines and falling nickel prices, reducing nickel ore inventories at ports. But Jinchuan Group lowered selling prices. There will be also continuous inflows of imported Russian nickel, and nickel inventories climbed further. SHFE 1605 nickel should hover between RMB 69,500-70,500/mt.

Some 33% see LME nickel fall to USD 8,500-8,700/mt. Caixin’s manufacturing PMI for China in December was downbeat. Jinchuan Group holding prices firm precipitated additional inflows of imported nickel, with China’s nickel inventories on the rise. A large number of small stainless steel plants will shut down soon due to the Chinese New Year holiday, and medium and large stainless steel mills are also expected to suspend production for the holiday, dampening nickel demand. The plunging Shanghai Composite Index depressed market sentiment, weighing down nickel futures. SHFE 1605 nickel will fluctuate between RMB 68,000-69,500/mt.