[Ni] CBI Morning Review - 2009/4/22 Nickel Market

SHANGHAI, Apr. 22 (CBI China) -- Three-month LME nickel opened at USD 12,000/mt, high USD 12,000/mt, low USD 11,400/mt, closed at USD 11,575/mt, down USD 450/mt. Discount is USD 79/mt, and the inventories are 106,518mt, up 672mt.

    After the recent rise due to the forecast of Chinese demand and the short-term recovery of global economy, the investors closed position after profit-taking, and the weak economic data in surrounding countries dampened LME nickel price and China’s spot nickel price, so the import profit margin shrank.

    The stock replenishments caused by private capital were coming to an end in China, so the market transactions became slim again. Although Jinchuan Group lifted the nickel price, China’s spot nickel price fell rapidly. But the moving range for nickel price lifted after the previous rise.

    As operating rates of Chinese large steel mills remained on high level, nickel price received relatively strong support around USD 11,000/mt. Domestic imported spot nickel price will fall to below RMB 100,000/mt, and the nickel price at Jinchuan Group will hover in the RMB 110,000-120,000/mt range.

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