SHANGHAI, May 30 (SMM) – LME nickel prices overnight opened at USD 17,000/mt, with the high end USD 17,120/mt, finding support at USD 16,538/mt. Finally, LME nickel prices closed at USD 16,640/mt, down USD 358/mt. Trading volumes increased by 2,074 lots to 2,935 lots, and total position was 109,257 lots, up 553 lots. LME nickel inventories were 106,104 mt, down 18 mt.
LME nickel prices overnight opened at USD 17,000/mt. As China's positive news boosted market confidence, LME nickel prices edged up later in the day. But since Spain's credit rating was further downgraded, LME zinc prices plunged to a record low since 2010 at USD 16,538/mt and finally closed at USD 16,640/mt, down USD 358/mt.
US CCI for May was 64.9, lower than previous 69.2. On the other hand, Dallas Federal Reserve's manufacturing index in May was 5.5, also lower than previous 5.6.In this context, base metal prices gave back previous gains and plummeted. As Spain's credit rating was further downgraded, the US dollar index hit a record high at 82.61. With political turmoil in Greece and crisis in Spain's banking sector, concerns over European debt crisis and global economic recovery grow. Rising US dollar index weighed down commodity prices significantly.
LME nickel prices should move between USD 16,500-16,900/mt today, and domestic spot nickel prices should fall slightly to USD 123,500-126,500/mt.