SHANGHAI, Feb. 8 (SMM) -- LME nickel LME nickel for delivery in three months opened at USD 21,550/mt and closed at USD 21,715/mt overnight, up by USD 115/mt from a day earlier, with the highest price at USD 21,715 mt and the lowest price at USD 21,266/mt. Daily trading volumes were 2,920 lots, down by 742 lots. Positions were 103,363 lots, up by 430 lots. LME nickel inventories were 93,918 mt, down 600 mt from a day earlier.

LME nickel prices experienced correction after rallying for several consecutive days during Wednesday’s Asian trading hours, but advanced slightly to close at USD 21,715/mt during the European trading hours as the US dollar index slumped.

The Greek government accepted to implement austerity measures proposed by IMF and the European Union, suggesting that the US debt crisis is heading into positive direction. Greek officials revealed that the Greek government was preparing for the EUR 130 billion bailout agreement, winning market recognition that Greek is making efforts to solve its debt crisis. In response, related commodity prices rebounded, with LME nickel prices paring most early losses as well.

LME nickel prices will meet certain resistance to advance further after rallying for three consecutive days, but the decline in the US dollar will lend support for risk assets, including LME nickel. It is expected that LME nickel prices will continue to fluctuate between USD 21,300-21,950/mt, and spot nickel prices will move in the RMB 144,200-145,000/mt range on Wednesday.