SHANGHAI, Sept. 14 (SMM) -- LME nickel prices opened at USD 21,645/mt, and closed at USD 21,351/mt overnight, down USD 212/mt from a day earlier, with the highest price at USD 21,710/mt and the lowest price at USD 21,225/mt. Daily trading volumes were 1,973 lots, down 379 lots from a day earlier. Positions were 90,050 lots, down 661 lots. LME nickel inventories were 99,048 mt, down 192 mt from a day earlier.
LME nickel prices largely fluctuated around USD 21,600/mt during the Asian trading hours, but fell to USD 21,400/mt during the European trading hours. Although LME nickel prices pointed to USD 21,600/mt during the evening trading hours, prices were immediately dampened to close at USD 21,351/mt, down USD 212/mt from a day earlier. LME nickel prices still moved between USD 21,000-22,000/mt, and will continue to fluctuate amid intensifying concern over European debt crisis.
The European debt crisis is still market focus. Positive statement from the European Central Bank and Germany officials eased market concern to certain extent. In addition, China also reiterated its stance to continue supporting EU countries to cope with European debt crisis, and will continue to invest Europe. In response, the US equity markets closed with gains across the board, and the US index ended with slight losses. NYMEX crude oil for delivery in October was boosted to close above USD 90/barrel, owing to decline in EIA crude oil inventory, while London spot gold closed with moderate gains.
Based on current performance, LME nickel prices still meet resistance at USD 22,000/mt, and find support at USD 21,000/mt. SMM expects that LME nickel prices will continue to fluctuate on Wednesday. In the Shanghai spot nickel market, overnight LME nickel price decline will depress transactions in spot market. SMM expects that spot nickel price will move in the RMB 158,500-160,000/mt range on Wednesday.