SHANGHAI, Sept. 15 (SMM) -- LME nickel prices opened at USD 21,400/mt, and closed at USD 21,299/mt overnight, down USD 52/mt from a day earlier, with the highest price at USD 21,450/mt and the lowest price at USD 20,950/mt. Daily trading volumes were 2,162 lots, up 189 lots from a day earlier. Positions were 91,288 lots, up 1,238 lots. LME nickel inventories were 98,706 mt, down 348 mt from a day earlier.
LME base metal prices closed with losses cross the board overnight. During the Asian trading hours, the euro slipped and the US dollar index rallied to 77.46 at around 2: pm from 76.96, due to investors' concern over slow progress in solving the European debt crisis. In response, LME nickel prices slipped and found support at USD 20,950/mt. During the evening trading hours, market sentiment was strongly boosted, which was encouraged by the news that Germany would continue to support Greece and would not allow the Greece to exit the euro zone. Meanwhile, the Greece also said it would strictly implement austerity plan. The US dollar pared certain gains and finally closed at USD 76.895. LME nickel prices also rebound and closed at USD 21,299/mt.
Global economic condition is still sluggish, and the EU debt crisis is still market focus. In addition, market lacks solid news to boost base metal prices. SMM expects that LME nickel price will continue to fluctuate, with support at USD 21,000/mt and resistance at USD 22,000/mt. In the Shanghai spot nickel market, SMM expects that spot nickel price will move in the RMB 158,500-160,000/mt range on Thursday.