SHANGHAI, May 11 (SMM) – LME nickel prices overnight opened at USD 17,250/mt, with the high end USD 17,361/mt, finding support at USD 17,060/mt. Finally, LME nickel prices closed at USD 17,180/mt, down USD 80/mt. Trading volumes decreased by 567 lots to 2,481 lots, and total position was 109,700 lots, down 371 lots. LME nickel inventories were 106,362 mt, up 570 mt.
LME nickel prices fell slowly and fluctuated at low levels due to positive US jobless claims data and export volume in March. But LME nickel prices continued to fall and dipped to a new low at USD 17,060/mt, while LME inventories continued to grow. Finally, LME nickel prices closed at USD 17,182/mt, down USD 80/mt.
Greece's left wing leader said his party failed to build a coalition government. European central bank said Greece will not receive further bailout unless it completes its work. Risk adverse sentiment dominated the market, pushing up the US dollar index to 80.22, combined with weak demand in markets, China's trade market was sluggish. Metal prices fell during European trading hours. But the number of US jobless claims for the week ending May 5th decreased 1,000 to 367,000, compared to 369,000 expected, pushing up commodity prices.
China will announce its CPI today, which will directly affect national monetary policies. LME nickel prices should rise to USD 17,500/mt today if the data turns out positive, but will fall to USD 17,000/mt level once the data is high. LME nickel prices should move between USD 17,000-17,500/mt, and spot nickel prices should remain between RMB 127,500-131,000/mt.