SHANGHAI, Jul. 26 (SMM) -- LME nickel for delivery in three months opened at USD 23,900/mt and closed at USD 23,950/mt last Friday, up by USD 50/mt from a day earlier, with the highest price at USD 24,201/mt and the lowest price at USD 23,850/mt. LME nickel prices opened flat at USD 23,950/mt during the Asian trading hours on Monday. Boehner, Speaker of the House of Representatives said the negotiation of raising the US debt ceiling stalled, and any default of the US debt is possible. Following Boehner’s statement, panic sentiment was triggered, and LME nickel prices fell to USD 23,689/mt in response. Players continue to focus on the development of the US debt issue. LME nickel inventories were up by 288 mt to 101,706 mt.
In the Shanghai nickel spot market, trading sentiment continued to be lackluster. The high purchase costs of Jinchuan nickel and Russian nickel made cargo-holders reluctant move goods at low prices. Traded prices of nickel only fell slightly during the morning trading hours, with traded prices of nickel from Russia between RMB 174,300-174,500/mt, and traded prices of nickel from Jinchuan Group in the RMB 174,800-175,000/mt range. When LME nickel prices expanded losses in the afternoon trading hours, cargo-holders further lowered offers, with offers of Russian nickel around RMB 174,000/mt and Jinchuan nickel around RMB 174,500/mt, but no transactions were reported. Based on result of an SMM survey, around 75% market players believe that current market trend is not clear, holding that LME nickel prices will continue to fluctuate narrowly at current level amid soft consumption and strong wait-and-see sentiment. Around 25% market players expect LME nickel prices will fall, since the US and EU debt issues still haunt market and the stock market has fallen again in China.