Nickel oxide participants watch the future market

BEIJING (Asian Metal) 5 Aug 09 – Supported by the continuous stocks market rise, 3-month nickel on LME rose sharply by USD880/t to USD18,830/t this Monday, creating a new record in 2009. According to nickel suppliers, the whole market is a bit active, and more buyers come to nickel market. They are not clear whether nickel market will go up further or not, and worry that nickel price will retreat again. However, with the global economy recovering and the commodity market warming up, participants predict that there is little room for nickel market to retreat again. They will continue to watch the future market.
A Shanghai-based nickel trader claimed that they sold around five tons of nickel of Norilsk brand at RMB141,000/t (USD20,644/t) this Tuesday, around RMB6,000/t (USD878/t) higher than the price on Monday. According to the source, they received more inquiries and most people only came to test the market. It is a question whether nickel price will go up further, but the news that another nickel mine has been closed also supported nickel price to some extent. The whole economy sees improvement and the market confidence is recovering.
"It is normal that nickel price continues to rebound and we predict that 3-month nickel on LME is probable to rise up to USD20,000/t in the following days," said the source, adding that demand from stainless steel plants is expected to become active in October. They will continue to hold wait-and-see attitudes towards the future market.
A nickel trader from Fujian also confirmed that they received more inquiries from customers, and most of buyers were still cautious to replenish stocks. According to the source, They sold around five tons of nickel of Inco brand at RMB157,000/t (USD22,987/t) on Monday, rising by RMB6,000/t (USD878/t) compared to this Monday. The source is confident in nickel price rebound in the following days, as they got information that global financial crisis may touch the bottom, and the commodity market will become active in the following days.
"Nickel price is likely to retreat slightly, but the whole trend will be upward," said the source, who also disclosed that the bank credit is easy to apply for now, so more investors can get more capital and continue to hold nickel stocks. Nickel market is possible to go up further.