LONDON (Scrap Register): Nickel prices at London Metal Exchange registered the biggest daily loss so far in August during last Friday’s European trading hours, down as much as 4.05 per cent. However, nickel market fundamentals remain positive.
In last Friday’s European trading hours, LME nickel slid below the 20-day moving average, down to $ 10,285 per tonne, according to SMM data.
Poor readings of China’s economic data released this weekend have also added market pessimism.
“Market fundamentals, however, are still improving, and this will give a boost to nickel price,” SMM nickel analyst points out.
According to SMM data, nickel ore inventories at China’s major ports keep rising, but some stocks being piled at ports have already been purchased by domestic downstream producers given the ongoing environmental drive in the Philippines, SMM learns.
Moreover, inbound shipments of refined nickel to China are expected to fall due to big import losses in July and August, SMM expects.
“In the stainless steel sector, output is expected to fall with unit maintenance and environmental factor. This, coupled with the nearing high-demand season, will bode well for stainless steel price, which will underpin nickel prices,” SMM adds.
Hence, SMM expects LME nickel to rally to $10,800-11,000 per tonne in late August.
TLM Price at posting:
40.0¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)