SHANGHAI, Nov. 24 (SMM) -- LME nickel prices fluctuated narrowly after opening at USD 17,660/mt during the Asian trading hours on Wednesday, but fell to USD 17,500/mt during the early European trading hours. The HSBC’s China initial PMI was 48, below the 50 mark and lower than 51 in a month earlier, which fueled market concern over economic slowdown in China. In addition, the recent US and European debt crisis also weighed on market sentiment. In response, LME nickel prices continued to extend weak momentum. LME nickel inventories were up 288 mt to 86,286 mt on Wednesday, following Tuesday’s inventory increase by over 2,000 mt. Premium of LME spot nickel fell from USD 35/mt to USD 10/mt. It is expected that LME nickel inventory may grow slower.
In the Shanghai nickel spot market, traded prices of spot nickel continued to fall amid poor performance of LME nickel prices. Traded prices of nickel from Russia were in the RMB 127,000-127,500/mt range, and traded prices of nickel from Jinchuan Group were in the RMB 129,000-129,500/mt range. Trading sentiment was extremely quiet. Inquires were limited, and downstream demand was soft. Deals were still largely done among traders.