SHANGHAI, Sep. 12 (SMM) – The PBOC reduced foreign exchange risk reserve ratio from 20% to zero yesterday, suggesting the PBOC does not want yuan to appreciate to fast. Onshore yuan fell sharply against US dollar as a result. The US dollar index rebounded. China’s M2 money supply in August, to be release today, might be slightly lower than previous figure. LME nickel should hover around USD 11,800/mt today after yesterday’s slight rally. There has been little news about nickel market fundamentals. Market players will closely watch whether scrap stainless steel trading has turned active based on scrap stainless steel prices.
The most active SHFE nickel should move at RMB 92,000-93,000/mt and spot nickel will trade at RMB 91,000-91,500/mt.