SHANGHAI, Aug. 18 (SMM) -- LME nickel for delivery in three months opened at USD 21,500/mt and closed at USD 21,639/mt on Tuesday, up by USD 179/mt from a day earlier, with the highest price at USD 21,725/mt and the lowest price at USD 21,235/mt. On Wednesday, LME nickel prices fluctuated narrowly after opening at USD 21,600/mt during the Asian trading hours. Supported by weak US dollar, LME nickel prices did not fall further, but were still weighed between 5-day and 10-day moving averages. Market movement was stalled before final outcome of negotiation between Germany and France concerning the European debt crisis. LME nickel inventories were down by 24 mt to 103,254 mt.
In the Shanghai nickel spot market, transactions were even quieter, as narrow fluctuation of LME nickel prices dampened cargo-holders’ trading sentiment. Mainstream traded prices of nickel from Russia were in the RMB 163,000-163,500/mt range, and mainstream traded prices of nickel from Jinchuan Group were in the RMB 164,500-164,800/mt range. Downstream demand was stable, and deals were largely made among traders. It is reported that demand did not shown any sign of recovery. Price spread between Jinchuan nickel and Russian nickel expanded to certain extent, which is mainly due to arrival of a large amount of Russian nickel from improved domestic/LME nickel price ratio. In this context, Russian nickel holders were eager to generate cash, and lowered prices, leaving price gap between Russian nickel and Jinchuan nickel wider.