SHANGHAI, Aug. 4 (SMM) -- LME nickel LME nickel for delivery in three months opened at USD 24,650/mt and closed at USD 23,920/mt, down by USD 780/mt from a day earlier, with the highest price at USD 24,685/mt and the lowest price at USD 23,831/mt. Daily trading volumes were 4,230 lots, up by 2,118 lots. Positions were 91,572 lots, up by 625 lots from a day earlier. LME nickel inventories were down by 42 mt to 102,900 mt.
LME nickel prices closed with significant losses and finished below USD 24,000/mt overnight, down by 3.15% from a day earlier. Market sentiment was still weighed by disappointing economic data from the US, rekindled EU debt crisis and lingering negative impact from the US debt issue. In this context, LME nickel prices tumbled to hit a low of USD 23,831/mt and closed at USD 23,920/mt, erasing gains made during the previous six consecutive days.
The US Institute of Supply Management (ISM) released on Wednesday that July’s PMI for non-manufacturing sector was 52.7, the lowest since February 2010 when the data was recorded of 52.7. Previous estimation of July’s PMI for non-manufacturing sector was 53.6, and the estimation was 53.3 in June. The US Department of Commerce announced that the US factory orders for June slipped by 0.8%, while market estimation was down by 0.7%. The reading was up by 0.6% in May. Revised durable goods orders for June were down by 1.9%, with initial reading of a decline by 2.1%% and May’s reading of an increase by 2.0%.
Data released on Wednesday from ADP Employer Services showed, the US private rolls in June increased by 114,000, up by 100,000 compared with previous estimation. However, the data failed to ease concern over the US economic growth.
LME nickel prices opened at USD 23,950/mt on Thursday. SMM expects LME nickel prices will struggle around USD 24,000/mt, and will face risks to fall further. If LME nickel prices fall below USD 24,000/mt, prices may find support around USD 23,200/mt. In the Shanghai nickel spot market, spot nickel prices are expected to fall sharply and shall move in the RMB 178,000-179,000/mt on Thursday. Close attention should be paid to whether or not Jinchuan Group will adjust ex-works nickel price.