LME Nickel to Move Higher (2017-7-12)

SHANGHAIM, Jul. 12 (SMM) – US’s wholesale inventory hit a 5-year high in May, a sign of weak demand. This, combined with Lael Brainard’s dovish comment and simmering Trump-Russia collusion event, sent US dollar index down. US’s API crude oil inventory registered a higher-than-expected decline in the week ending July 7, and gasoline inventory also decreased, shoring up COMEX oil. Attention should be on OPEC’s oil monthly report. LME nickel will keep rising on Wednesday and SHFE 1709 nickel will trade at RMB 74,700-75,900/mt.

In China’s domestic market, spot nickel should trade at RMB 74,500-77,400/mt on Wednesday.