SHANGHAI, Jun. 26 (SMM) -- LME nickel LME nickel for delivery in three months opened at USD 23,950/mt and closed at USD 23,846/mt overnight, down by USD 104/mt from a day earlier, with the highest price at USD 23,976/mt and the lowest price at USD 23,689/mt. Daily trading volumes were 1,172 lots, up by 143 lots. Positions were 86,897 lots, up by 144 lots from a day earlier. LME nickel inventories were up by 288 mt to 101,706 mt.
Affected by stumble in Chinese shares after a deadly train crash, LME nickel prices fell to hit a low of USD 23,689/mt during the Asian trading hours on Monday. LME nickel prices fluctuated narrowly, and later pared certain losses, with prices finally closing at USD 104/mt during the European trading hours. As no agreement has bee reached on raising the US debt ceiling and Greek credit rating was cut down further, LME nickel prices were weighed to move below USD 24,000/mt on Monday.
The EU and US equity markets largely ended with losses overnight, and the euro and the US dollar were mainly flat. The crude oil fall, but the gold advanced to USD 1614.24/ounce, a new high, amid risk aversion sentiment. Shanghai Composite Index tumbled by 2.96%, affected by cautious sentiment in overseas market and negative impact from China’s deadly train crash.
Outlook of talks on raising the US debt ceiling is not clear, and market sentiment remains cautious. Affected by decline in neighboring market, LME nickel prices have fallen below USD 24,000/mt. SMM expects that LME nickel prices will continue to fluctuate on Tuesday, with support at USD 23,800/mt. Affected by decline in LME nickel price, Shanghai nickel spot nickel prices will largely move in the RMB 174,300-174,800/mt range on Tuesday.