SHANGHAI, Jun. 1 (SMM) – LME nickel prices overnight opened at USD 16,260/mt, with the high end USD 16,500/mt, finding support at USD 16,225/mt. Finally, LME nickel prices closed at USD 16,358/mt, up USD 18/mt. Trading volumes decreased by 648 lots to 3,443 lots, and total position was 111,093 lots, up 2,574 lots. LME nickel inventories were 107,106 mt, up 354 mt.
Spain's 10-day government bond yields fell 2 basis points to 6.61%, while Italy's 10-day government bond yields dropped 4 basis points to 6.02%, boosting LME nickel prices. But since US jobless claims were lower than expected, LME nickel prices gave back gains and closed at USD 16,358/mt, up USD 18/mt.
USD ADP Employer Services released the 133,000 jobs were added in May, higher than previous 119,000, but lower than 150,000 expected. The number of jobless claims for last week was 383,000, higher than the previous figure and the forecast of 370,000. Market confidence improved on news that European officials will support the banking sector in capital restructuring and form an alliance in the sector. But risk aversion sentiment grew due to weak US job data, with the euro against the US dollar hitting a 22-month low, weighing down LME base metal prices. China's May CPI will be released today, which is expected to fall to 52%, down from April's 53.3%. Slower expansion in the manufacturing sector shows economic growth further slid, and SHFE base metal prices are expected to fall today.
LME nickel prices should move between USD 16,200-16,500/mt today, and domestic spot nickel prices should remain between RMB 121,000-124,800/mt.