Nickel prices ticked up June 8 after US non-farm payroll data showed 172,000 jobs added in May, beating analyst forecasts. The upbeat report,with upward revisions of 93,000 jobs for March and April, has markets now fully expecting a 25 basis point Fed rate hike by year's end.
In spot market,SMM #1 refined nickel price jumped 1,400 yuan per metric ton from prior day . Jinchuan #1 refined nickel averaged 1,000 yuan,up 50 yuan. Electrodeposited nickel from top domestic brands saw premiums vary widely,between -600 and 400 yuan per metric ton.
On futures side,SHFE nickel 2607 contract,most traded,rose slightly,closing morning session at 139,830 yuan per metric ton,a 0.79% bump. Stronger US dollar,boosted by jobs data,pressures risk assets like nickel.
Global refined nickel stocks estimated at 390,000 metric tons,with China still building reserves . Yet,nickel prices face hurdles. Sulfur supply constraints,crucial for intermediates,persist. MHP production cuts not lifted. Analysts see SHFE nickel fluctuating between 137,000 and 145,000 yuan per metric ton, propped by strong cost fundamentals. How long this holds…
