SHANGHAI, Aug. 11 (SMM) -- LME nickel LME nickel for delivery in three months opened at USD 21,500/mt and closed at USD 21,120/mt overnight, down by USD 130/mt from a day earlier, with the highest price at USD 22,075/mt and the lowest price at USD 20,936/mt. Daily trading volumes were 4,737 lots, down by 1,567 lots. Positions were 91,756 lots, up by 125 lots from a day earlier. LME nickel inventories were up by 294 mt to 102,876 mt.
During the early European trading hours, LME nickel prices advanced and hit a high of USD 22,075/mt due to improved economic news. However, during the late European trading hours, risk appetite waned due to concern over the France’s banking system, triggering slumps in global equity markets. In response, LME nickel prices fell sharply from high, and closed at USD 21,120/mt, down by USD 130/mt from a day earlier.
The US equity markets slumped on Wednesday, due to concern over possible down grade of France’s triple-A credit rating, with equity in the banking sector leading the decline. In addition, the US Federal Reserves’ pessimistic expectation over economic outlook dampened investors’ confidence. The Dow Jones Industrial Average Index closed at 10719.94 points, down by 519.83 points or down by 4.62% from a day earlier. Gold prices hit USD 1,800/oz on Wednesday.
LME nickel prices opened low at USD 20,968/mt on Thursday. SMM expects LME nickel prices will continue to be weighed and will test sustainability at USD 20,000/mt on Tursday. Shanghai nickel spot prices are expected to slip along with LME nickel prices, and will move in the RMB 164,500-165,500/mt range on Thursday.