Nickel prices on the London Metal Exchange (LME) have fallen to the levels set for the last few days, approaching the prices in the Chinese market.
Premium prices in LME prices compared to Shanghai Futures Exchange (SHFE) fell below 10 percent on Thursday after a slight rise in commodity prices in China.
The sharp movements in nickel in LME continue in the downward direction this week. After the 250 percent increase last week, transactions were suspended, some transactions were canceled, and the way the situation was handled caused reactions from some traders on the stock market.
Nickel slumped to the point where the limit was set for the fourth day in the LME on Monday, down to around $30,000 in SHFE. According to some investors, this level may attract buyers back to the market and normalize their transactions. The unique rally in the LME last week pushed prices much higher than in China.
Nickel prices in China increased to 29 thousand dollars excluding taxes, while prices in LME decreased to 31 thousand 380 dollars. Investors are evaluating the developments with the turbulence that has occurred in the markets in the past weeks, after the compression on the short positions taken by the Chinese entrepreneur Xiang Guangda. While the Chinese entrepreneur is arranging funds to finance his short position, he noted that he believes this is a sign that prices will decrease with increasing supply in Indonesia.
While nickel decreased by 7.9 percent to $ 28 thousand 900 during the day, it was seen that buyers reacted at this level. Since the market opened last week, the commodity, which has decreased to the price limit for decline every day, did not regress to the base level for the first time.
Despite the decline experienced so far, Nickel is still 51 percent higher this year, and this rate stands out as the best performance among the 6 base metals of the stock market by far.
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