SHANGHAI, Jun. 13 (SMM) -- LME nickel LME nickel for delivery in three months opened at USD 19,380/mt and closed at USD 19,700/mt, up by USD 260/mt from a day earlier, with the highest price at USD 19,950/mt and the lowest price at USD 19,350/mt. Daily trading volumes were 5,019 lots, up by 2,227 lots. Positions were 109,981 lots, down by 1,058 lots. LME nickel inventories were 92,334 mt, down 510 mt from a day earlier.
Successful auction of government bonds of two European government boosted optimistic sentiment. In addition, the European Central Bank president Mario Draghi hinted unchanged interest rate. In this context, the euro surged. In response to positive news from the euro zone, LME nickel prices hit a high of USD 19,950/mt and closed at USD 19,700/mt, up 1.34%.
Auction of government bonds of Italy and Spanish was quiet successful on January. In addition, the European Central Bank decided to keep bench mark interest rate unchanged at 1%. In response, base metal prices rallied again. However, the rapid decline of China’s CPI and PPI heightened possibility that China may loose it monetary policy and fueled the expectation that China’s central bank may cut bank requirement reserve ratio in the following week, which boosted base metal market as well.
Trading volumes increased significantly on stronger euro and eased pessimisms following positive news from the euro zone. However, the positive news almost digested by market. It is expected that LME nickel prices will continue to remain fluctuation trend, and may meet resistance at USD 20,000/mt. In China’s nickel spot market, spot nickel prices advanced along with LME nickel price increase, and are expected to move in the RMB 135,500-137,500/mt range on Friday.