SHANGHAI, May 9 (SMM) – LME nickel prices overnight opened at USD 17,700/mt, with the high end USD 17,700/mt, finding support at USD 17,150/mt. Finally, LME nickel prices closed at USD 17,360/mt, down USD 223/mt. Trading volumes increased by 1,150 lots to 3,949 lots, and total position was 112,434 lots, up 1,870 lots. LME nickel inventories were 105,642 mt, up 1,362 mt.
LME nickel prices opened much higher at USD 17,700/mt, but then fell due to previous negative news. Disappointing industry output in Germany boosted the market. As a result, LME nickel prices stopped falling and closed at USD 17,360/mt, down USD 223/mt.
LME and NYMEX metal markets plunged due to negative results of French and Greece's election. European debt crisis re-erupted. Domestic stimulus policies will be postponed if CPI does not drop as sharply as expected.
Due to strong short momentum, expectations that Greece will be forced out of the eurozone are growing. In this context, LME nickel prices should remain steady, unlikely fall sharply, moving between USD 17,000-17,500/mt and finding support at USD 17,134/mt. Spot nickel prices should fall to RMB 127,000-130,500/mt.