SHANGHAI, Nov. 25 (SMM) -- LME nickel prices opened at USD 17,185/mt and closed at USD 17,075/mt overnight, down USD 130/mt from a day earlier, with the highest price at USD 17,332/mt and the lowest price at USD 17,033/mt. Daily trading volumes were 1,094 lots, down 2,456 lots. Positions were 96,275 lots, up 753 lots. LME nickel inventories were 88,476 mt, up 2,190 mt from a day earlier.
Moody's Investors Service on Thursday downgraded Hungary's government bond rating by one notch to BB+ from BBB-, maintaining a negative outlook, and added to further cut of its credit rating if the country's economic condition continues to deteriorate. However, economic data from Germany and the UK was positive, providing a relief to market sentiment. The US market was closed overnight due to Thanksgiving Day holiday. Players are mainly focusing the meeting scheduled on Thursday and participated by leaders from France, Germany and Italy. Leaders from the three countries may have a discussion on functions of the European Central Bank. Market players hoped that the meeting would come up with certain proposals to solve the European debt crisis.
LME nickel prices fluctuated narrowly between USD 17,200-17,300/mt during the Asian and early European trading hours overnight. However, weighed by pessimistic sentiment during the evening trading hours, LME nickel prices fell to hit a low of USD 17,033/mt and closed at USD 17,075/mt, down USD 130/mt from a day earlier.
Short sentiment still dominated market, and players were cautious. SMM expects LME nickel prices will fluctuate at low level, with support at USD 17,000/mt. In China’s domestic nickel spot market, overnight LME nickel price decline will drag down spot nickel prices to move in the RMB 125,000-127,500/mt on Friday.