SHANGHAI, Jun. 4 (SMM) -- LME nickel for delivery in three months opened at USD 19,950/mt and closed at USD 18,649/mt, down USD 1,251/mt from a day earlier, with highest price at USD 20,293/mt and lowest price at USD 18,546/mt. Daily trading volumes were 3,772 lots and positions were 89,306 lots.
LME nickel prices fell sharply to a four-month low by 6.29% on June 3rd. The economic data released by China on Tuesday indicated a slower expanding pace of manufacture activities, triggering market concern that demand for copper from China will be greatly lower-than-expected and further weighing on market sentiment. Market shall continue to be dragged down by the concern over debt crisis in Europe. The US dollar climbed all the way due to optimistic expectation over the non-farm employment report to be released on Friday, with the non-farm employment data expected to increased 513,000/mt. Metal demand from the EU and north America will gradually wane, as most manufacturing companies will halt production either for unit maintenance or for holiday reason. In this context, demand for nickel is expected to fall further.
The significant decline of nickel prices may attract a large amount of bargain-hunting buying, and prices are expected to move in the USD 18,400-20,300/mt range on June 4th.
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