SHANGHAI, Aug. 25 (SMM) -- LME nickel LME nickel for delivery in three months opened at USD 20,875/mt and closed at USD 20,850/mt overnight, up by USD 100/mt from a day earlier, with the highest price at USD 21,061/mt and the lowest price at USD 20,500/mt. Daily trading volumes were 3,017 lots, up by 291 lots. Positions were 86,883 lots, up by 792 lots from a day earlier. LME nickel inventories were up by 660 mt to 103,926 mt.
LME nickel prices fluctuated lower after advancing slightly to USD 21,000/mt during the early trading hours. LME nickel prices accelerated declines and fell to hit a low of USD 20,500/mt during the early European trading hours. Supported by dip-buying and better-than-expected durable goods orders, LME nickel prices rebounded between USD 20,800-21,000/mt later. Finally, LME nickel prices closed at USD 20,850/mt, up by USD 100/mt from a day earlier. Investors were cautious amid global macro economic instabilities, and weak equity market also weighed on base metal movements.
The US Department of Commence announced on Wednesday that the US durable goods orders for July was up by 4.0% MoM to USD 201.45 billion mt, higher than previous estimation of an increase by 2.0% MoM. The data pushed Dow Jones Industrial Average to 11,293 points. However, equity market later pared early gains, and base metal prices fell in response.
Market is focusing on the Federal Reserve Chairman Ben Bernnake’s remark at Wyoming meeting, as the meeting will shed a light concerning whether or not the Federal Reserve will adopt policies to stimulate economic growth.
Market sentiment continued to be weighed. SMM believes that LME nickel prices will continue to fluctuate, meeting resistance at 5-day moving average and finding support at USD 20,200/mt on Thursday. Shanghai nickel spot market is expected to remain sluggish, and prices will move in the RMB 158,500-159,500/mt range on Thursday.