SHANGHAI, May 16 (SMM) – LME nickel prices overnight opened at USD 16,910/mt, with the high end USD 17,080/mt, finding support at USD 16,840/mt. Finally, LME nickel prices closed at USD 17,047/mt, up USD 101/mt. Trading volumes decreased by 130 lots to 2,393 lots, and total position was 104,722 lots, down 3572 lots. LME nickel inventories were 105,774 mt, down 456 mt.
Greece's plan of forming a new coalition government failed, weighing down LME nickel prices to a new low for the year at USD 16,840/mt. As large numbers of shorts closed positions with profit-taking, LME nickel prices rebounded to close at USD 17,047/mt, up USD 101/mt.
A spokesman for the Greek president said leaders of Greece's parties did not reach any agreement to form a new coalition government post the last negotiation on the issue, and the country will launch another general election. President of the IMF said he hopes Greece will not be forced out of the euro zone otherwise turmoil will be caused, leading to growth, trade and finance problems. Investors bought US dollars with expectation that Greece will be forced out of the euro zone, pushing up the US dollar index. In this context, risk assets will be pushed down, so Shanghai metal prices should fall slightly today.
LME nickel prices should move between USD 17,200-16,550/mt today, and domestic spot nickel prices should move between USD 125,000-128,500/mt.