Nickel futures traded on the Shanghai Futures Exchange (SHFE) have buoyed by 12.24 percent in the recent four trading days, representing a four-day winning streak.
Meanwhile, the SHFE tin futures also increased nearly 7 percent in the period. The strong performance of nonferrous metals across the board has boosted the nickel and tin futures thanks to the improvement in China's demands and the recently weak US dollar, said Zhang Jingjing, an analyst of Nanhua Futures.
Meanwhile, strikes in BHP Billiton's Cerro Matoso nickel mine in Columbia also lent support to the nickel prices. Looking into the future, with the policies to stabilize economic growth working, if China's economy stabilizes and rebounds in the second quarter, the authorities will likely weaken the policy role. In addition, there is limited room for the US dollar to fall further. Given these factors, the nickel and tin will face limited room for their uptrend, said market watchers.
In short term, the rebound in nickel and tin will continue for a while due to the tight supplies on the spot market. The easing monetary policy and favorable policies will continue to support the market. Therefore, in the medium and short term, the rebound can continue, but market glut will emerge in the long term, said Li Wenjing, an analyst of Industrial Futures.
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