SHANGHAI, Jun. 14 (SMM) – LME nickel prices last Friday opened at USD 17,145/mt, with the high end USD 17,293/mt, finding support at USD 16,915/mt. Finally, LME nickel prices closed at USD 17,026/mt, down USD 59/mt. Trading volumes decreased by 1,497 lots to 2,169 lots, and total position was 116,381 lots, down 727 lots. LME nickel inventories were 103,998 mt, down 336 mt.
LME nickel prices opened at USD 17,200/mt. Spanish 10-year government bond yields rose to 6.7%, and Italian 10-year government bond yields rose to 6.18%, pushing down LME nickel prices. Positive industrial data in Europe once boosted LME nickel prices, but as Moody's downgraded Spain's rating, market confidence weakened. Finally, LME nickel prices closed at USD 19,026/mt, down USD 59/mt.
LME base metals prices overnight closed with declines. Moody's downgraded government bond rating of Cyprus from BA1, to BA3, and included it in the watch list, and downgraded the rating of Spain from A3, to BAA3, and also included the country in the watch list of further downgrade. In the meantime, Germany Chancellor Merkel denied the feasibility of eurozone joint bond. He said Germany will not agree on any proposal which will lead to exacerbating crisis.
In this context, LME nickel prices should move between USD 16,700-17,200/mt today, and domestic spot nickel prices should move between RMB 121,000-125,000/mt.