[Ni] CBI Morning Review - 2009/4/16 Nickel Market

SHANGHAI, Apr. 16 (CBI China) -- Yesterday, LME copper and LME nickel inventories continued to slide down, plus short-covering and Chinese imports, the prices of base metals continued to rise significantly. Transactions became active in spot nickel market due to strong domestic copper price, stock replenishment of downstream and upstream producers and the demand of speculations, and nickel price also continued to pick up, leading to wide price spread between domestic and international markets. From the current domestic nickel price, the import price spread remained more than RMB 10,000, and LME nickel rose as well after the Easter Day holiday positively affected by the optimistic sentiment in domestic spot market. In the short term, as the nickel demand in end-market remained weak, and the stock replenishment activities will coming to an end gradually, so nickel price is expected to fluctuate significantly to re-test below USD 10,000/mt in the coming one or two weeks.

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