SHANGHAI, Jun. 25 (SMM) – LME nickel prices last Friday opened at USD 16,475/mt, with the high end USD 16,630/mt, finding support at USD 16,105/mt. Finally, LME nickel prices closed at USD 16,561/mt, up USD 102/mt. Trading volumes decreased by 844 lots to 2,890 lots, and total position was 113,208 lots, up 2,174 lots. LME nickel inventories were 103,086 mt, up 192 mt.
European central bank announced it will lower requirements for mortgages, and leaders of Germany, France, Italy and Spain agreed to push the economic growth stimulus plan of EUR 130 billion, pushing up LME nickel prices to rebound by USD 102/mt and finally close at USD 16,561/mt.
LME nickel prices continued to fall during the closure of the SHFE market. Economic growth of China and US will continue to slide due to ongoing European debt crisis and global recession. Moody’s downgraded ratings of 15 large banks, with the outlook of 9 banks negative. Metals will maintain downward track due to pessimism, but declines will narrow after a plunge in May.
LME nickel prices should move between USD 16,100-16,800/mt today, and domestic spot nickel prices should move between RMB 119,500-123,000/mt.