SHANGHAI, Jun. 26 (SMM) – LME nickel prices overnight opened at USD 16,645/mt, with the high end USD 16,689/mt, finding support at USD 16,225/mt. Finally, LME nickel prices closed at USD 16,410/mt, down USD 151/mt. Trading volumes decreased by 898 lots to 1,992 lots, and total position was 112,630 lots, down 658 lots. LME nickel inventories were 1030,804 mt, up 204 mt.
Spain officially applied for bailout funds, and Cyprus is the fifth country asking for bailout in Europe. As a result, Greek stocks markets plunged by 6.8%, and the euro against the US dollar hit a new low in two weeks, pushing down LME nickel prices to close at USD 16,410/mt, down USD 151/mt.
LME base metal prices rallied overnight. Investors remained cautious ahead of the opening of EU summit. The EU summit will take place on June 28th, and EU leaders will make new plans to boost economic growth and improve loan requirements. If Germany does not loosen fiscal requirements, base metal prices will be weighed down. But if proposals of deposit insurance, issuing public bonds in euro zone, purchasing government bonds with bailout funds and expanding European central bank's balance sheet are promulgated, base metals prices will rebound. Investors are now taking a wait-and-see attitude.
LME nickel prices should move between USD 16,100-16,750/mt today, and domestic spot nickel prices should move between RMB 118,500-122,500/mt.