SHANGHAI, Mar.6 (SMM) -- LME nickel prices slipped to hit a low at USD 19,181/mt after opening at USD 19,550/mt on Monday, and later fell to USD 19,050/mt after rebounding to USD 19,375/mt. Finally, LME nickel prices closed at USD closed at USD 19,099/mt, down USD 371/mt from a day earlier. Trading volumes were 2,776 lots, down 279 lots. Positions were 103,000 lots, down 1,720 lots. The lower-than-expected GDP growth target set by China triggered investors’ concern over metal demand perspective, which weighed on base metal prices.
Market is still negatively affected by cut in China’s GDP growth target, so it is expected that LME nickel prices will fluctuate weakly after a low opening on Tuesday, and may slip further to fall below USD 19,000/mt, with support at USD 18,704/mt in the short term.
SMM expects that LME nickel prices may fall below USD 19,000/mt and will be supported at USD 18,704/mt, while spot nickel prices will continue to move between RMB 137,200-137,700/mt on Tuesday due to dampened market sentiment.