SHANGHAI, May 28 (SMM) – LME nickel prices opened at USD 17,095/mt last Friday, with the high end USD 17,108/mt, finding support at USD 16,955/mt. Finally, LME nickel prices closed at USD 17,059/mt, up USD 109/mt. Trading volumes decreased by 816 lots to 1,660 lots, and total position was 108,285 lots, up 978 lots. LME nickel inventories were 105,156 mt, down 354 mt.
LME nickel prices opened at USD 17,095/mt last Friday, USD 145/mt higher than the previous trading day. But due to pessimism, Asian equity markets were sluggish. The US dollar index was firm due to ongoing European debt crisis and concerns over global economic outlook, hitting a 20-month high. As a result, LME nickel prices gave back previous gains and finally closed at USD 17,059/mt.
University of Michigan's May CCI was 79.3, the highest since October 2007, higher than the forecast of 77.8, compared to 76.4 in April. European news continued to dominate the market, most of which was negative. Catalonia asked for financing support from the government, making the situation of debt-ridden Spain even worse. Risk appetite plummeted due to concerns over Greece and Spain's banking sector, causing base metal prices to drop sharply after hitting a 20-month high. But as producers stopped moving goods, base metal prices will find support.
LME nickel prices should move between USD 16,800-17,200/mt today, and domestic spot nickel prices should rise slightly to USD 124,000-128,000/mt.