SHANGHAI, Mar.9 (SMM) -- LME nickel prices advanced to USD 19,275/mt after opening at USD 19,021/mt on Thursday, but later fell to close at USD 18,775/mt. Daily trading volumes were 2,806 lots, down 207 lots. Positions were 105,000 lots, down 131 lots from a day earlier.
Although it lacked news on development of Greek debt swap from officials, it was reported around 95% creditors agreed to participate in the Greek debt swap deal, which was better than market expectation. In response, market sentiment was boosted, sending stock markets higher in the Europe and the US and allowing LME base metal prices to close with gains. LME nickel prices were relatively weak overnight, meeting resistance at USD 19,300/mt and finding support at USD 18,670/mt. Longs stopped losses when LME nickel prices fell below USD 18,670/mt, and continued to hold position if LME nickel prices were higher than RMB 18,670/mt.
It is expected that optimistic expectation over China’s CPI and the US non-farm employment data will lend support for base metal prices. SMM expects that LME nickel prices will stabilize and spot nickel prices will move in the RMB 135,000-135,300/mt range on Friday.