SHANGHAI, Nov. 21 (SMM) -- LME nickel prices opened at USD 17,810/mt and closed at USD 17,754/mt overnight, down USD 59/mt from a day earlier, with the highest price at USD 18,160/mt and the lowest price at USD 17,670/mt. Daily trading volumes were 1,870 lots, up 114 lots. Positions were 96,018 lots, down 314 lots. LME nickel inventories were 84,750 mt, up 1,530 mt from a day earlier.

LME nickel prices initially advanced but later fell back last Friday. During the Asian trading hours, LME nickel prices largely fluctuated narrowly, but were boosted to move higher to USD 18,160/mt on stronger euro during the early European trading hours. During the evening trading hours, LME nickel prices fell to certain extent as concern over the European debt crisis and its impact on global economy continued to weigh on investing sentiment. Finally, LME nickel prices closed at USD 17,754/mt, down USD 59/mt from a day earlier. 

The deadlocked debt crisis in the US and Europe still weighed on market sentiment. The non-US dollar currency rebounded significantly on the news that the European Central Bank may provide loans for International Monetary Fund, but fell significantly later due to slow action and implementation of previously-envisioned plans. In addition, the US deficit reduction Super-Committee (SC) appears headed for a stalemate. The latest comments from SC panelists suggest the two sides remain far apart on a package of spending cuts and revenue increases with the approaching of the deadline on November 23rd, which may delay implementation of financial and structure reform and may eventually drag down the US economy.

Market sentiment is expected to be weighed as the US and European debt crisis remain unsolved. SMM predicts that LME nickel prices will continue to fluctuate around USD 18,000/mt on Monday. In China’s domestic nickel spot market, last Friday’s LME nickel price decline will slighltly drag down spot nickel prices to move in the RMB 129,500-132,000/mt range on Monday.