SHANGHAI, May 15 (SMM)-LME nickel market overnight opened at USD 17,195/mt, with the highest and lowest level of USD 17,300/mt and USD 16,890/mt, respectively. Finally, LME nickel market closed at USD 16,946/mt, down USD 169/mt from a day earlier. Trading volumes were 2,523 lots, and positions were 108,294 lots.
Base metals market neglected the positive news that China’s central bank will cut the reserve requirement ratio, and reignited concerns over the debt issues triggered sell-offs. The failure to build a collation government in Greece triggered market fears, and European leaders warned Greece that it could have to leave the euro zone, if it fails to comply with targets outlined in the bailout plan.
Besides, market worried that Spain may become next victim of the European debt crisis. The turmoil in the financial markets weighed down the euro, and the dollar strengthened as a result. All these, together with disappointing consumption, trade, and production data in China, base metals markets tumbled.
Markets focus on Greece again, and the yielding of Spanish and Italian bond sales is soaring, reigniting market fears over the European debt issues. SMM expects LME nickel prices between USD 16,550-17,000/mt. Domestic spot nickel prices will be in the RMB 125,000-128,000/mt range on Tuesday. Trading will be light as market pessimism prevails.