SHANGHAI, Nov. 17 (SMM) -- LME nickel prices opened at USD 17,725/mt and closed at USD 18,150/mt overnight, up USD 575/mt from a day earlier, with the highest price at USD 18,155/mt and the lowest price at USD 17,490/mt. Daily trading volumes were 2,059 lots, down 319 lots. Positions were 96,887 lots, down 1,277 lots. LME nickel inventories were 83,598 mt, down 90 mt from a day earlier.

LME nickel prices fell all the way to hit a low of USD 17,490/mt during the Asian trading hours, but pared certain losses to fluctuate narrowly on weaker US dollar during the early European trading hours. Boosted by upbeat economic data from the US and Italian’s 10-year government bond yields' falling from 7%, LME nickel prices soared to close at USD 18,150/mt, up USD 575/mt from a day earlier.

Except Germany, the yields of sovereign debt for euro zone countries all advanced, despite that the European Central Bank brought government bonds of Italy, Spain, and Portugal. In addition, the US dollar index continued to advance. Moreover, Fitch released a report showing concern that the expansion of European debt crisis may threaten U.S. banks' credit rating. In this context, risk aversion sentiment was fueled in the market. Investors will closely watch government bonds auction of Spain and France.

LME nickel prices are expected to fluctuate narrowly amid uncertainties of the European debt crisis, with support at USD 18,000/mt on Thursday.  In China’s domestic nickel spot market, overnight LME nickel price increase will boost spot nickel prices to move in the RMB 132,000-134,000/mt range on Thursday.