MethodologyContact usLogin
Nickel was the outperformer of the SHFE complex, exhibiting similar strength to that of the London Metal Exchange’s three-month nickel price at the end of last week.
The most-traded August nickel contract on the SHFE rose to 106,150 yuan ($15,424) per tonne as at 9.27am Shanghai time, up by 2,310 yuan per tonne, or 2.2%, from Friday’s closing price of 103,840 yuan per tonne.
A softer US currency amid growing expectations of a cut in interest rates in the United States by the end of this month was broadly supportive to nickel prices – as well as the rest of the complex.
The dollar index, which gauges the strength of the US dollar against a basket of foreign currencies, was at 96.83 as of 9.27am Shanghai time on Monday. This compares with a recent high of 97.59 on July 9.
“[Federal Reserve chairman] Jerome Powell was the biggest factor on the dollar’s decline by testifying twice [last week] in Washington about monetary policy,” Alfonso Esparza, senior market analyst from online trading services provider Oanda, said in a morning note.
“Powell kept up the dovish rhetoric and has the market fully pricing in a rate cut at the end of the month. The timing seems no longer in question, but the size of the cut is still open to speculation,” Esparza added.
Providing further support to nickel prices are concerns of possible supply disruptions.
“Nickel prices have been bolstered by further supply uncertainties following an earthquake in Indonesia near nickel-rich Sulawesi on [July 8], after the region was hit by flooding in June. Other disruptions have featured recently. Vale has suspended operations at Onca Puma following a court ruling and Glencore’s Koniambo complex in New Caledonia has been halted follow a leak of molten material,” Fastmarkets research analyst James Moore said.
Zinc and aluminium were also in positive territory during morning trading on Monday but to lesser extents with gains of 0.7% and 0.3% respectively. Other highlights