SHANGHAI, Dec. 2 (SMM) -- LME nickel prices opened at USD 17,180/mt and closed at USD 17,100/mt on Wednesday, down USD 175/mt from a day earlier, with the highest price at USD 17,440/mt and the lowest price at USD 16,940/mt. LME nickel prices fell rapidly below USD 17,300/mt after opening at USD 17,500/mt on Thursday, and later erased some losses. However, LME nickel prices dipped again to a low of USD 17,075/mt during European trading hours. LME nickel prices made some gains on Wednesday supported by positive news, but fell back on Thursday due to profit-taking and ongoing European debt crisis, with the caution still dominating the market. LME nickel inventories were 91,074 mt, up 684 mt.
In the Shanghai nickel spot market, LME nickel price increase helped support spot nickel prices. Mainstream traded prices of nickel from Jinchuan Group were in the RMB 127,200-127,300/mt range in morning trading, and mainstream traded prices of nickel from Russia were in the RMB 125,800-126,000/mt range. Later, spot nickel prices climbed as LME nickel prices kept rising during Asian trading hours, with mainstream traded prices for nickel from Russia increasing to RMB 126,300-126,500/mt and prices for nickel from Jinchuan Group advancing to RMB 127,500-127,800/mt. Trading volumes increased, with deals mainly made by arbitragers. Actual demand in the spot market remained sluggish, and few downstream consumers entered the market, with transactions mainly made between traders.