SHANGHAI, Jun. 27 (SMM) – LME nickel prices overnight opened at USD 16,445/mt, with the high end USD 16,495/mt, finding support at USD 16,165/mt. Finally, LME nickel prices closed at USD 16,304/mt, down USD 106/mt. Trading volumes increased by 406 lots to 2,398 lots, and total position was 112,751 lots, up 121 lots. LME nickel inventories were 103,794 mt, up 714 mt.
Spanish 6-month government bond yields climbed from 1.793% on June 22nd, to 3.369%, and 3-month government bond yields also rose from 0.879%, to 2.500%. Merkel was resolutely opposed the issuance of eurozone government bonds, and Italian Prime Minister said he will resign if Merkel is still opposed eurozone government bonds. As a result, expectations of achievement resulted from the EU summit weakened, weighing down base metal prices. LME nickel prices finally closed at USD 16,304/mt, down USD 106/mt.
LME base metal prices overnight generally closed down. The market is focus on the EU summit taking place this Thursday. Mixed stance of EU countries might cause worse-than-expected result. The EU summit might positively affect the market, but will not change the downward track of base metals.
Egan-Jones downgraded the credit rating of Germany, so Germany will likely get involved in European debt crisis. LME nickel prices should move between USD 16,000-16,500/mt today, and domestic spot nickel prices should fall further to RMB 118,300-121,800/mt.