SHANGHAI, Jun. 19 (SMM) -- LME nickel LME nickel for delivery in three months opened at USD 24,100/mt and closed at USD 23,770/mt, down by USD 380/mt from a day earlier, with the highest price at USD 24,215/mt and the lowest price at USD 23,625/mt. Daily trading volumes were 2,350 lots, down by 224 lots. Positions were 88,064 lots, down by 169 lots from a day earlier. LME nickel inventories were down by 840 mt to 102,354 mt.
LME nickel prices fluctuated lower overnight, as risk aversion sentiment grew along with concern over the European debt crisis and latest development of the US debt limit. In addition, the stronger US dollar also weighed on LME nickel prices. Finally, LME nickel prices failed to stood above USD 24,000/mt mark, and closed down by USD 380/mt.
Market players are still focused on the development of European debt crisis, as bank stress test results failed ease investors’ concern over risks of debt default. The US debt limit negotiation is also focused by market players, and almost no progress has been made during the weekend over raise of USD 14.3 trillion of budget limited set by Parliament, weighing on base metal prices.
SMM expects LME nickel prices will fluctuate lower and will largely move below USD 24,000/mt on Tuesday, and Shanghai nickel spot prices will also be weighed between RMB 173,500-174,500/mt on Tuesday.