SHANGHAI, Jun. 19 (SMM) -- LME nickel LME nickel for delivery in three months opened at USD 21,250/mt and closed at USD 21,250/mt, down by USD 640/mt from a day earlier, with the highest price at USD 21,925/mt and the lowest price at USD 21,235/mt. Daily trading volumes were 2,108 lots, up by 211 lots, Positions were 86,747 lots, down by 1,674 lots from a day earlier.  LME nickel inventories were down by 162 mt to 103,092 mt.                 

Hit by a series of disappointing economic data, investors sell off risk assets in a large scale. In this context, base metal market slumped. On Thursday night, LME nickel prices were on downward track and accelerated declines later, with prices finally closing at USD 21,250/mt, down by USD 640/mt from a day earlier. Plunge in the US equity market weighed on base metal prices. It was reported that CRB was down by 2%, the largest decline since August 8th, and Down Jones Industrial Average was down by 3.4% to 11,027 points.

August's manufacturing index in the US mid-Atlantic region was 30.7, lower than previous estimation of 3.7 and July’s 3.2.The initial jobless claim from the US in the week ending on August 13 was 408,000, higher than previous estimation of 400,000. July’s CPI was up by 0.5% MoM, higher than estimation of 0.2%. Deducting food and energy, July’s CPI was up by 0.2% MoM, largely in line with expectation.

In addition, Morgan Stanley cut global economic growth expectation for 2011 and 2012.

Base metal prices will continue to be affected by macro economic news. Amid current global financial turmoil, SMM expects base metal prices will continue to be weighed. LME nickel prices opened at USD 21,449/mt on Friday. Current economic data were upbeat and market sentiment was relatively bearish, but SMM expects LME nickel prices are not likely to experience another slump and will find support at USD 20,000/mt on Friday. Shanghai nickel spot prices are expected to slip slightly along with overnight’s LME nickel price decline, and will move in the RMB 162,500-164,000/mt on Friday.