SHANGHAI, Feb. 6 (SMM) -- On the first trading day following Chinese New Year, LME nickel prices fell slightly due to declines in the euro following profit-taking after opening at USD 21,653/mt. On Tuesday, LME nickel prices were again weighed down by a combination of negative factors including the 17% yield rate for Portugal’s 10-year government bonds, a lack of progress in Greek debt talks, and weak economic indicators from the US. However, LME nickel prices rebounded slightly on Wednesday once upbeat PMI from the US and the euro zone eased market pessimism. During Thursday’s Asian trading hours, China's domestic stock market also rebounded strongly and pushed up LME nickel prices, but concerns over euro zone debts caused LME nickel prices to close with slight losses during European and New York trading hours.
Some traders and downstream producers are expected to replenish stocks following the Chinese Lantern Festival on February 6th, so SMM expects trading volumes will grow and spot nickel prices will move in the RMB 140,000-149,000/mt range in the coming week.