SHANGHAI, May 21 (SMM) – LME nickel prices overnight opened at USD 17,105/mt last Friday, with the high end USD 17,279/mt, finding support at USD 16,801/mt. Finally, LME nickel prices closed at USD 16,835/mt, down USD 298/mt. Trading volumes increased by 441 lots to 2,623 lots, and total position was 104,414 lots, up 767 lots. LME nickel inventories were 106,182 mt, up 618 mt.
LME nickel prices rebounded to USD 17,279/mt as large numbers of buyers entered the market. As Fitch downgraded ratings of banks in Greece, LME nickel prices fell and finally closed at USD 16,835/mt, down USD 298/mt.
The Camp David Declaration released on May 19th following the G8 summit emphasized the governments should take measures to boost market confidence and push economic growth, such as increasing productivity, economic growth and demand. G8 also emphasized Greece should stay in the euro zone and implement its obligations. But the summit did not give detailed methods to push up growth, indicating mixed platforms between Germany and France. Germany insists on credit tightening policies. Despite the market is not confident with the G8 summit, positive news allowed base metal prices to stabilize and rebound.
LME nickel prices should move between USD 16,600-17,000/mt today, and domestic spot nickel prices should move fall to USD 123,500-126,500/mt.