SHANGHAI, Mar. 7 (SMM)-LME nickel market overnight opened at USD 19,100/mt, with the highest and lowest level of USD 18,628/mt and USD 18,690/mt, respectively. Finally, LME nickel market closed at USD 18,690/mt, down USD 409/mt or 2.14% from a day earlier. Transactions were 3,454 lots, up 678 lots from a day earlier. Positions were 104,000 lots, up 934 lots from a day earlier.
LME nickel prices weakened during the session, down as low as USD 18,700/mt, and will likely drop further in the short term, and may slid to USD 18,300/mt.
Risk aversion sentiment increased following the news that Greece will delay the debt swap deadline. As the March 8 deadline is near, markets are worried about how many investors will accept a 53.5% write-down on their debt. Once no enough private-sector investors voluntarily take part in debt swap, market sentiment will be dampened, no matter Greece activate collective-action clauses or disorderly default. As a result, US and European stocks tumbled, and LME metals weakened significantly, with copper recording the biggest single day decline for the year.
LME nickel prices are expected to keep falling, and will test USD 18,700/mt, and in domestic nickel market, spot prices will be negatively affected by tumbling prices in the LME nickel market overnight, with prices to move towards RMB 134,500/mt.