SHANGHAI, Aug. 25 (SMM) -- On Tuesday, 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. On Wednesday, supported by weaker US dollar, LME nickel prices advanced to hit a high of USD 21,049/mt after opening at USD 20,875/mt during the Asian trading hours. However, LME nickel prices fell to hit a low of USD 20,500/mt during the early European trading hours and then rebounded rapidly to USD 21,000/mt. Market sentiment was cautious before Federal Reserve's meeting. LME nickel prices still met resistance at 5-day moving average. LME nickel inventories were up by 660 mt to 103,926 mt.
In the Shanghai nickel spot market, trading sentiment remained quiet. Mainstream traded prices of nickel from Jinchuan Group were in the RMB 159,000-159,500/mt range, and mainstream traded prices of nickel from Russia were in the RMB 158,000-158,500/mt range. The steadily sluggish performance of LME nickel prices dampened market confidence, and spot nickel prices constantly fell. In addition, a large amount of nickel from Russia arrived at Shanghai nickel spot market, so the ample supply of goods made spot nickel prices not as firm as before. Downstream consumption was still soft, and deals were largely done among traders.