[Ni] CBI Morning Review - 2009/4/8 Nickel Market

SHANGHAI, Apr. 8 (CBI China) -- Recently, the metal prices continued to fluctuate in the high level, as more concerns about the demand restricted the price to rise sharply, while the declines in the inventories supported the price effectively. The LME copper cancelled warrants have reached 60kt, accounting for 12% of the total inventories, while the domestic profit margins for import remained large (the current profit of RMB 1,500/mt), so the inventories will continue to decline, leaving to upward momentum for the price. The demand for nickel was weaker than copper, so the nickel price failed to soar to USD 11,000/mt recently, with obvious pressure from technical aspect. Nickel price will hover in the USD 10,500-11,000/mt range in the short term, with increasing possibility of downward trend.

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