SHANGHAI, Jun. 7 (SMM) – SMM surveyed 30 market players to find that 10 are bullish, 15 are neutral and 5 are bearish.
The 33% bullish ones expect LME nickel to move between USD 8,650-8,800/mt this week. SHFE 1609 nickel should rise to RMB 68,000-70,000/mt. The US dollar index plunged due to sluggish non-farm employment data. Philippine President-elect announced to enhance mining supervision, and this will bolster nickel prices in the near term. Stainless steel prices, especially prices for #300 stainless steel have dropped to cost line. Some producers entered loss territory, so stainless steel prices will unlikely fall this week.
See SMM Price Forecast Please Click: LME and SHFE Nickel to Drop Next Week, SMM Says
About 50% are neutral, seeing LME nickel hover between USD 8,450-8,650/mt. The likelihood remains that the Fed may raise rate in July. Any laws or regulations in the Philippines will unlikely come into force in a short period from being proposed, so any effects on nickel prices from the news will be limited. SHFE 1609 nickel should fluctuate between RMB 67,500-68,500/mt.
About 17% are bearish, expecting LME nickel to fall to USD 8,400/mt. Concerns over a likely Brexit Remain. China’s refined nickel inventories soared in May, weighing on nickel price. Downstream demand softened in June, so nickel price is expected to roll back early gains. SHFE 1609 nickel should fluctuate below RMB 67,500/mt.