December 2019 | Base Metals
Nickel: Still room to work lower
Nickel prices are now down 28% from September’s high and still have room to work lower in the short-to-medium term given weak demand, the poor macro backdrop, ample inventory held off-market, continuing exports from Indonesian for the time being, and bearish technical momentum. In a low case scenario, nickel could target base support from the uptrend line off the 2016 lows, which would mean around $12,000 per tonne.
LME nickel price now down 28% from September The LME official nickel cash price ended last week at $13,810 per tonne, down 4.1% from $14,400 per tonne a week earlier. Prices have continued to slip this week and stand at $13,515 per tonne at the time of writing on December 3. At this level they are down 28% from the early-September peak of $18,850 per tonne. No real tightness LME warehouse stocks stood at 68,280 tonnes last week, up from 66,822 tonnes a week earlier. SHFE stocks were hardly changed, edging 122 tonnes...
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