Nickel futures prices surged after profit-taking by shorts. SHFE 1507 nickel rallied up by 3.54% to close at 96,160 yuan per tonne, and LME, as of 15:07 Beijing time, traded at $12,920 per tonne, up 1.69%.
Any further room will be allowed for nickel prices to go up, or nickel prices will track lower again?
“SHFE nickel will follow the trend in LME nickel market after just being launched, and will get boosted from a rally in SHFE copper in the short term,” an analyst from COFCO Futures told SMM in an interview.
The long-term outlook is also not bad, the analyst added.
“I expects nickel prices to keep falling in the coming months, with next key support level around $11,400 per tonne”, Commerzbank’s analyst said.
“Investors should be very careful of recent price movements, and supply in China’s domestic spot market now remains sufficient, and the round of gains is just price corrections after earlier losses,” an analyst from Guosen Futures said.