SHANGHAI, May 24 (SMM) – LME nickel prices overnight opened at USD 16,900/mt last Friday, with the high end USD 16,960/mt, finding support at USD 16,720/mt. Finally, LME nickel prices closed at USD 16,756/mt, down USD 184/mt. Trading volumes decreased by 1,072 lots to 3,011 lots, and total position was 104,460 lots, down 52 lots. LME nickel inventories were 105,156 mt, up 564 mt.
LME nickel prices opened at USD 16,900/mt, and inched down as Spain's and Italy's 10-year government bond yields rose by 4 basis points respectively during Asian trading hours, hitting a record low for the year at USD 16,750/mt. The eurozone non-official meeting did not reach any agreement due to mixed stand on the debt issue, so LME nickel prices remained weak and finally closed at USD 16,756/mt, down USD 184/mt.
The non-official meeting between EU leaders did not achieve any result, boosting risk aversion sentiment. The equity markets fell and the euro against the US dollar index hit a 22-month low for the year at 1.2600, pushing up the US dollar index to 82. The European central bank has formed a work team to prepare for Greece leaving the euro zone. The EU non-official meeting failed to reach any agreement, and European leaders will unlikely reach a consensus at the EU summit taking place next month, so Greece will be forced out of the euro zone. International financial markets should be shocked. Global financial markets continue to plunge, while the US dollar became a safe haven asset, and commodity and base metal prices should be further weighed down.
LME nickel prices should move between USD 16,400-16,900/mt today, and domestic spot nickel prices should fall to USD 124,000-126,500/mt.