SHANGHAI, Sept. 19 (SMM) -- Last Thursday, LME nickel prices moved stably between USD 21,299-21,399/mt after opening, and surged to hit a high of USD 21,837/mt from the early European trading hours. Finally, LME nickel prices closed at USD 21,815/mt, up USD 516/mt or 2.42% from a day earlier, breaking through 30-day moving average and weighed below 60-day moving average. During Friday’s Asian trading hours, LME nickel prices advanced from USD 21,755/mt to USD 21,951/mt, and later fell to USD 21,850/mt. LME base metal prices rallied across the board during the Asian trading hours, owning to improved risk appetite following global major central banks' move to inject liquidity to European commercial banks. In response, base metal market and Asian equity market advanced on Friday.
Although LME nickel prices advanced by 2.42% last Thursday, trading volumes only increased slightly and positions reduced significantly, suggesting weak momentum for LME nickel price to rebound. From a short-term perspective, LME nickel prices expanded gains after breaking through USD 21,500/mt on Friday, and are expected to advance further to test USD 22,000/mt, with resistance still felt at USD 22,000/mt.
In the Shanghai nickel spot market, mainstream traded price of nickel from Russia was RMB 160,000/mt and mainstream traded price of nickel from Jinchuan Group was RMB 161,000/mt. According to trades, transactions improved compared to two days earlier. Boosted by LME base metal price increase, transactions increased, but were still largely among traders.