SHANGHAI, Sept. 28 (SMM) -- LME nickel prices opened at USD 18,500/mt and closed at USD 19,047/mt overnight, up USD 833/mt from a day earlier, with the highest price at USD 19,170/mt and the lowest price at USD 18,350/mt. Daily trading volumes were 3,854 lots, down 1,843 lots. Positions were 91,531 lots, down 2,052 lots. Inventories were 97,458 mt, up 318 mt.
The US dollar softened overnight, on rumor of interest rate reduction and on the news of implementation of Euro 2 trillion bailout plan in Europe. In response, LME nickel prices further rebounded and hit a high of USD 19,170/mt. Finally, LME nickel prices closed at USD 19,047/mt, up USD 833/mt from a day earlier.
On Tuesday, market sentiment was boosted on the news that European Financial Stability Fund (EFSF) bailout fund would be extended and European policy makers reached a consensus on new debt solution plan. In response, the euro advanced and the US dollar slipped. Gold pared losses recorded in a day earlier, and crude oil advanced by over 5%. LME base metal prices rallied across the board. Except LME aluminum, other LME metals all rallied by over 4%.
Although the Europe hope eased market sentiment to certain extent, overall macroeconomic condition did not change significantly. Investors' concern over global economy still haunted market. It is expected that LME nickel prices will test sustainability between USD 18,500-19,000/mt. In domestic nickel spot market, SMM expects that spot nickel prices will be boosted by overnight LME nickel price rally and will move in the RMB 139,000-140,500/mt range on Wednesday.