SHANGHAI, May 22 (SMM)-LME nickel market overnight opened at USD 16,850/mt, with the highest and lowest level of USD 17,185/mt and USD 16,800/mt, respectively. Finally, LME nickel market closed at USD 17,170/mt, up USD 335/mt from a day earlier. Transactions were 2,580 lots, down 43 lots. Positions were 103,844 lots, down 570 lots. Inventories were 106,122 mt, down 60 mt.
The positive message from the G8 meeting helped LME nickel prices advance, with a higher close.
The G8 leaders stressed last Saturday that Greece should stray within the euro zone, and to comply with commitment is essential, helping improve market sentiment. Moreover, Chinese Premier, Wen Jiabao said to take proactive policies to make growth a bigger priority, and investors expect more stimulus measures from Chinese government. In addition, the euro-zone March construction output rose 12.4%, the first increase since November 2011. Collectively, market risk appetite improved, supporting the market.
The US dollar index fell back after hitting a new high, and coupled with the absorption of positive news from the G8 Summit, LME nickel prices are expected to rise. The rising momentum in the LME nickel market, however, remains weak due to no fundamental improvement in the European debt issues.
SMM expects LME nickel prices to move between USD 16,800-17,500/mt, and mainstream traded prices in domestic nickel spot market will be between RMB 125,000-129,000/mt on Tuesday.