SHANGHAI, Nov. 9 (SMM) -- LME nickel prices fluctuated narrowly around 5-day moving average after opening at USD 18,700/mt during the Asian trading hours on Tuesday, but advanced to hit a high of USD 18,775/mt on weaker US dollar during the early European trading hours. Market focus is shifting to the increasing budget deficit in Italy. LME nickel inventories were 83,640 mt, down 1,416 mt from a day earlier.
In the Shanghai nickel spot market, traded prices were relatively stable. Mainstream traded prices of nickel from Jinchuan Group were in the RMB 138,000-138,500/mt range, and mainstream traded prices of nickel from Russia were in the RMB 135,000-135,500/mt range. Lacking guidance, LME nickel prices still fluctuated at low level, weighing down on market sentiment. Traders made transactions cautiously, and deals were still largely done among traders. Downstream stainless steel mills frequently reported production cut, reducing demand for refined nickel. In this context, few downstream consumers entered market.