SHANGHAI, Oct. 19 (SMM) -- On Monday, LME nickel market opened at USD 18,900/mt and closed at USD 18,855/mt, down USD 70/mt from a day earlier, with the highest price at USD 19,150/mt and the lowest price at USD 18,651/mt. On Tuesday, market concern exacerbated following the announcement from Germany's finance minister that Sunday's EU summit will not release clear solution to solve the European debt crisis, which fueled risk aversion sentiment in the market. In response, the US dollar resumed upward momentum, and LME nickel pries hit a low of USD 18,550/mt after opening at USD 18,800/mt during the Asian trading hours. LME nickel inventories were 90,438mt, down 486 mt from a day earlier.
In the Shanghai nickel spot market, Monday’s slight decline of LME nickel price, coupled with Tuesday’s steady slip of LME nickel prices dragged down traded prices of spot nickel. Mainstream traded prices of nickel from Russia were in the RMB 137,500-138,000/mt range, and mainstream traded prices of nickel from Jinchuan Group were around RMB 139,500/mt. Although Jinchuan Group nickel was quoted at RMB 140,000/mt, actual transactions at this price level were limited due to low price acceptance. Overall transactions were quiet, and trading sentiment was extremely sluggish when LME nickel prices accelerated declines during the afternoon trading hours. Downstream consumers entered market cautiously and largely adopted a wait-and-see attitude when nickel prices were on downward track, while deals were largely made among traders.