SHANGHAI, Feb. 28 (SMM)—LME nickel market overnight opened at USD 20,175/mt, with the highest and lowest level of USD 20,300/mt and USD 19,880/mt, respectively. Finally, LME nickel market closed at USD 20,132/mt, down USD 18/mt from a day earlier. Transactions for the day were 1,829 lots, down 506 lots. Positions were 1,074,684 lots, up 2,104 lots. Inventories were 97,398 mt, down 138 mt.
During Asian trading hours, LME nickel prices edged up in response to high stocks prices in China. LME nickel prices during US and European trading hours fluctuated narrowly due to no major news, with prices finally generally flat with the level in a day earlier.
Macro-economic news was mixed during the day. German parliament approved a second Greek bailout, and the US released better-than-expected pending home sales and February Dallas Federal Reserve manufacturing activity. Market sentiment, however, did not improve significantly. Later, the S&P cut the outlook for European Financial Stability Facility (EFSF) to negative, and lowered Greece’s rating from CC to selective default. Moreover, G-20 meeting is mixed over the way to rescue Greece. Current market fundamentals are not favorable, and most metals in the LME market overnight closed with limited gains.
Due to the lack of news, LME nickel prices are expected to move between USD 20,000-20,300/mt, and domestic spot nickel prices will be in the RMB 138,500-141,000/mt range on Tuesday.