SHANGHAI, Aug. 24 (SMM) -- LME nickel LME nickel for delivery in three months opened at USD 20,900/mt and closed at USD 20,750/mt, down by USD 27/mt from a day earlier, with the highest price at USD 21,177/mt and the lowest price at USD 20,675/mt. Daily trading volumes were 2,726 lots, up by 241 lots. Positions were 86,091 lots, up by 430 lots from a day earlier. LME nickel inventories were down by 96 mt to 103,266 mt.
Boosted by better-than-expected HSBC PMI from China, LME nickel prices advanced slightly during the Asian trading hours. LME nickel prices continued to be firm during the early European trading hours due to weaker US dollar, but LME nickel prices fell to hit a low of USD 20,675/mt during the late European trading hours due to negative impact from weaker-than-expected economic data from the US. Finally, LME nickel prices closed at USD 20,750/mt, down by USD 27/mt from a day earlier. LME nickel prices still met strong-resistance at 5-day moving average and extent weak momentum. LME nickel was the only product that closed with losses overnight
HSBC released that China's initial PMI for August slightly improves after deteriorating for three consecutive months. The euro zone manufacturing data and the US new housing sales fell to a 5-month low, suggesting that sluggish economic growth in developed economies continues.
Investors are waiting for any clue for economic stimulation on Fed's meeting to be held on Friday.
Moody’s announced to cut Japan’s government rating to Aa3. The downgrade was prompted by large budget deficits and the build-up in Japanese government debt since the 2009 global recession.
LME nickel prices opened at USD 20,875/mt on Wednesday. SMM expects LME nickel prices will remain fluctuation trend, and will meet resistance at 5-day moving average on Wednesday. SMM expects that Shanghai nickel spot prices will largely remain stable between RMB 159,500-160,500/mt on Wednesday.