SHANGHAI, Jun. 28 (SMM) – LME nickel prices overnight opened at USD 16,330/mt, with the high end USD 16,365/mt, finding support at USD 16,169/mt. Finally, LME nickel prices closed at USD 16,283/mt, down USD 21/mt. Trading volumes decreased by 401 lots to 1,997 lots, and total position was 112,018 lots, down 733 lots. LME nickel inventories were 103,800 mt, up 6 mt.
German Chancellor Merkel reclaimed her stance she will not agree at the EU summit to issue joint government bonds. Concerns over euro zone improved in response. LME nickel prices fell in the afternoon and finally closed at USD 16,283/mt, down USD 21/mt.
LME base metal prices overnight were mixed. The market was doubtful about the result of the meeting, and base metals prices rebounded slightly. 79％ of German surveyed are opposed the issuance of eurozone government bond. Besides, Spanish 10-year government bond yields surged by 7%, allowing Spanish financing costs to rise significantly. In addition, the credit rating of Cyprus was downgraded by Fitch to junk status, and the country applied for bailout to EU. The US dollar index continued to fluctuate around 82.50, with the US dollar popular with investors.
LME nickel prices should move between USD 16,000-16,500/mt today, and domestic spot nickel prices should move between RMB 118,000-121,800/mt.