SHANGHAI, Nov. 2 (SMM) -- On Tuesday, LME nickel prices were weighed down after opening at USD 19,525/mt during the Asian trading hours, but accelerated declines to move below USD 19,000/mt during the European trading hours, pointing to test 30-day moving average. Investors’ concern over the latest development of European debt crisis grew as MF Global filed for bankruptcy protection on Monday, weighing on base metal prices. LME nickel inventories were 86,676 mt, up 168 mt.
In the Shanghai nickel spot market, spot nickel prices moved lower as LME nickel prices fluctuated down on Monday. Mainstream traded prices were between RMB 139,000-141,000/mt in the morning trading hours, and were between RMB 138,500-140,500/mt in the afternoon trading hours. Market transactions were still sluggish, with deals largely done between traders and limited done by downstream consumers. Fundamentals of nickel did not change much. Demand for nickel waned due to production cut at private steel mills. Coupled with sluggish performance of LME nickel prices, traders made transactions cautiously. It is expecteed that trading sentiment in spot market will be hard to improve.