SHANGHAI, Aug. 10 (SMM) -- LME nickel LME nickel for delivery in three months opened at USD 21,500/mt and closed at USD 21,500/mt overnight, up by USD 199/mt from a day earlier, with the highest price at USD 21,967/mt and the lowest price at USD 20,200/mt. Daily trading volumes were 6,304 lots, down by 574 lots. Positions were 91,631 lots, down by 131 lots from a day earlier. LME nickel inventories were up by 6 mt to 102,582 mt.
LME nickel prices advanced after slipping overnight. During the early Asian trading hours, LME nickel prices hit a low of USD 20,200/mt. Later, China released a three-year high CPI for July, but market responded insensitive towards the data, with LME nickel prices beginning to rebound. During the European trading hours, market sentiment improved, as market expected that the Federal Reserve would adopt measures to support economic growth. In response, the US equity markets rebounded and euro advanced, boosting LME nickel prices. Finally, LME nickel prices closed at USD 21,500/mt, up by USD 199/mt from a day earlier.
The US equity markets rebounded significant on Tuesday, with Dow Jones Industrial Average Index settling at 11,239.77 points, up by 3.98% from a day earlier. The Federal Reserve announced to keep interest rate unchanged between 0-0.25% for at least two years to 2013, indicating possibility of a new round quantitative easing policy. In this context, equity in major European economies advanced slightly. New York crude oil futures price lost 2.5% to close at USD 79.30/barrel, while gold prices advanced by USD 29.80/ournce to finish at USD 1,743/ounce.
On Wednesday, LME nickel prices advanced after a high open. As market sentiment has improved and a need for technical rebound, SMM expects LME nickel prices will advance slightly but will meet resistance at USD 22,200/mt on Wednesday. Affected by overnight LME nickel price increase, Shanghai spot nickel prices are expected to advance and move in the RMB 157,500-158,500/mt range on Wednesday.