Nickel Prices Slump as Strong US Jobs Data Reignites Rate Hike Expectations
Nickel prices declined slightly on September 7, following strong nonfarm payrolls in the US. The August data showed an addition of 162,000 jobs, exceeding expectations, and a steady unemployment rate of 4.1%. This has reignited expectations for a September rate hike by the Federal Reserve, with the probability rising to around 60% according to CME FedWatch.
The strong US dollar and Treasury yields are exerting pressure on nickel prices. However, sulfur remains at high prices, providing cost support for hydrometallurgy. The SHFE nickel contract (2610) traded in a narrow range, closing down 0.04% at 127,990 yuan/mt.
Copper prices remained strong, while the base metals complex diverged. LME copper rose for a 10th consecutive week, approaching its record high of $14,527/mt.