SHANGHAI, Sept. 19 (SMM) -- LME nickel prices opened at USD 21,750/mt and closed at USD 21,505/mt last Friday night, down USD 310/mt from a day earlier, with the highest price at USD 22,000/mt and the lowest price at USD 21,495/mt. Daily trading volumes were 2,150 lots, down USD 63 lots. Positions ere 88,172 lot, up 366 lots. Inventories were 67,650 mt, down 570 mt.
LME nickel prices were on upward track and hit a high of USD 22,000/mt during Last Friday’s Asian trading hours and early European trading hours. However, LME nickel prices pared early gains due to slump in equity market and hit a low of USD 21,500/mt. Finally, LME nickel prices closed at USD 21,505/mt, down USD 310/mt from a day earlier. Generally speaking, LME nickel prices still extend weak momentum.
Last Friday, Germany's Chancellor Angela Merkel stressed that the Germany government would not agree to issue euro zone bond, heavily depressing market sentiment. Although the US University of Michigan consumer confidence index came better than market expectation, it still failed to boost market sentiment. Although equity markets in the EU and US largely ended with gains, their movements were extremely volatile, suggesting unclear market outlook. The US dollar and gold rebounded, while the euro was weighed. Crude oil prices slumped, lingering around USD 90/barrel.
The European debt crisis still haunted market. In addition, the poll result announced last weekend from the US was extremely negatively for Obama’s re-election. It is expected that market sentiment will continue to be weighed before release of any positive news. At present, LME nickel prices will continue fluctuate, with resistance at USD 22,000/mt and support between USD 21,500-21,000/mt. In the Shanghai nickel spot market, spot nickel prices will be dragged down by last Friday's LME nickel price decline, and will largely move in the RMB 159,500-160,500/mt rang on Monday.