HSBC’s January PMI for China was 49.7, falling short of market expectations and shrinking for the second consecutive month, depressing market confidence and causing the Shanghai Composite Index to fall 2.56%. LME nickel prices opened at USD 15,085/mt, but rose all the way to touch as high as USD 15,165/mt. But during European trading hours, LME nickel prices dipped but found support from USD 15,000/mt. During US trading hours, LME nickel prices pulled up to touch USD 15,400/mt, then rolled back some gains and closed at USD 15,225/mt, up 0.56%. Trading volumes increased 235 to 4,742 lots, and total positions decreased 133 to 210,769. LME nickel inventories fell 1,266 to 424,974 mt.

LME nickel prices are expected to rise today. Spot nickel prices in Shanghai will move between RMB 108,800-109,800/mt.