SHANGHAI, Aug. 11 (SMM) -- LME nickel for delivery in three months opened at USD 21,500/mt and closed at USD 21,500/mt on Tuesday, 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. The Federal Reserve announced to keep ultra low interest rate unchanged till 2013 on Tuesday night, easing market panic sentiment and boosting base metal market. On Wednesday, LME nickel prices opened at USD 21,500/mt and advanced to hit a high of USD 22,050/mt, due to support from lower US dollar index. LME nickel inventories were up by 294 mt to 102,876 mt.
Jinchuan Group cut ex-works nickel prices by RMB 5,000/mt to RMB 164,000/mt on Wednesday. In the Shanghai nickel spot market, spot prices advanced significantly from a day earlier. Traded prices were mixed. Mainstream traded prices of nickel from Russia were around RMB 165,000/mt, and mainstream traded prices of nickel from Jinchuan Group were around RMB 166,000/mt. However, overall trading sentiment was quiet, as faltered sentiment restricted transactions. Although LME nickel prices rebounded on Tuesday, most market players still made transactions cautiously.