Nickel Prices to Correct Down (2017-8-31)

SHANGHAI, Aug. 31 (SMM) – The US dollar index rebounded from lows last night, causing base metals to close with declines, except aluminum and tin. Nickel prices saw the biggest decline. Nickel futures prices have been rising for 7 weeks in a row and will lack momentum for further gains. Sellers in both futures and spot markets are more willing to sell at current high prices. Environmental protection inspection team went to Shandong early this week, triggering worries that nickel output might shrink. So, nickel prices continued rising early this week. But, one high-grade NPI producer in Shandong’s Binzhou reopened after environmental protection inspection team left. This eased worries over declines in NPI supply from environmental factor. So, nickel prices fell back. 

SHFE 1801 nickel should range RMB 92,000-92,500/mt. Spot nickel prices will be RMB 90,800-91,300/mt in domestic market.