SHANGHAI, Nov. 11 (SMM) -- LME nickel prices opened at USD 18,165/mt and closed at USD 18,178/mt overnight, up USD 128/mt from a day earlier, with the highest price at USD 18,282/mt and the lowest price at USD 17,850/mt. Daily trading volumes were 1,957 lots, up 124 lots. Positions were 98,435 lots, up 354 lots. LME nickel inventories were 83,280 mt, up 120 mt from a day earlier.

LME nickel prices largely fluctuated between USD 18,000-18,200/mt overnight, falling below USD 18,000/mt twice but later paring certain losses, and closed at USD 18,178/mt at the tail of the trading, up USD 128/mt from a day earlier. The economic condition in the euro zone triggered risk aversion sentiment in the market, weighing on base metal prices. Last night, the Standard and Poor’s kept France's AAA credit outlook unchanged, and the initial jobless claim from the US were significantly down, lending certain relief to investors.

The European Central Bank brought Italian government bond in a large amount, and Monti became a promising candidate for Italy's Prime Minister, easing market panic sentiment and lowering yields of Italy government bond below 7%. Later, the Standard and Poor’s announced to keep outlook of France's AAA/A-1+ rating stable, lending to certain relief in the market. In addition, the US Department of Labor announced that initial jobless claim in the week ending on November 5th were down to the lowest level since April 2nd. The above news helped financial market stabilize. The Dow Jones Industrial Average and New York light crude oil advanced to three-month high, preventing base metal prices from slipping further.

LME nickel prices rebounded overnight and closed above USD 18,000/mt, suggesting certain support at USD 18,000/mt. SMM expects that LME nickel prices will remain fluctuation trend on Friday. In China’s domestic nickel market, although LME nickel prices closed with gains overnight, market sentient was still sluggish. Therefore, SMM expects that spot nickel prices will move at low levels between RMB 131,500-134,500/mt on Friday.