SHANGHAI, Jun. 13 (SMM) -- LME nickel LME nickel for delivery in three months opened at USD 18,550/mt and closed at USD 18,300/mt, down by USD 350/mt from a day earlier, with the highest price at USD 18,550/mt and the lowest price at USD 18,080/mt. Daily trading volumes were 2,285 lots, up by 334 lots. Positions were 112,434 lots, down by 385 lots from a day earlier. LME nickel inventories were up by 282 mt to 90,324 mt.

LME nickel prices slumped overnight. The Moody’s warned to reappraise credit ratings of euro zone members and the Fitch Ratings criticized the slow progress in solving the European debt crisis. In response, the US dollar rallied, dragging down base metal prices overnight. The Shanghai Composite Index fell below 2300 market, weighing on commodity prices and soured investor appetite. 

LME nickel prices slipped all the way and hit a low of USD 18,080/mt during the Asian and European trading hours overnight. Shanghai Composite Index fell below 2300 points, weighing down base metal prices. During the evening trading hours, LME nickel prices pared certain losses and closed at USD 18,300/mt, down USD 350/mt from a day earlier. The lack of solid news from the EU summit dampened risk appetite in the market, weighing on the US-denominated base metal prices.

Affected by renewed concern, SMM expects that LME nickel prices will fluctuate at low levels and may test support at USD 18,000/mt on Tuesday. In China’s nickel spot market, overnight LME nickel price decline will drag down spot nickel prices to certain extent. SMM expects that spot nickel prices will move in the RMB 128,500-130,000/mt range on Tuesday.