SHANGHAI, Mar. 28 (SMM)-LME nickel market overnight opened at USD 18,281/mt, with the highest and lowest level of USD 18,419/mt and USD 17,781/mt, respectively. Finally, LME nickel market closed at USD 17,800/mt, down USD 453/mt from a day earlier. Transactions for the day were 3,717 lots, up 1,130 lots. Positions were 101,032 lots, down 429 lots. Inventories were 99,222 mt, up 1530 mt.
The US dollar index returned above 79, and meanwhile market worries over slowing demand in China continued to dent the market, sending metal prices lower. Without solid support, LME nickel market staged panic losses after falling below USD 18,000/mt, and finally finished at USD 17,800/mt, down USD 450/mt.
Metals prices in the LME market overnight edged lower amid the lack of news. Trading volumes in the Shanghai market dropped quickly. Market sluggishness was due largely to the HSBC’s weak PMI data, and low operating rates at downstream producers. Market investors turned cautious following worries about economic growth in China, causing transactions to weaken.
After sharp losses, LME nickel market will likely stabilize, with prices expected between USD 17,000-18,000/mt. The market will lack strong momentum to rebound due to the absence of positive news, and markets should be wary of any further declines. In the domestic nickel market, spot prices will drop to the RMB 128,000-133,000/mt price range on Wednesday.