SHANGHAI, Jun. 29 (SMM) – LME nickel prices overnight opened at USD 16,300/mt, with the high end USD 16,530/mt, finding support at USD 16,132/mt. Finally, LME nickel prices closed at USD 16,220/mt, down USD 63/mt. Trading volumes increased by 2,275 lots to 4,272 lots, and total position was 111,163 lots, down 855 lots. LME nickel inventories were 103,746 mt, up 54 mt.
Spanish government bond yields rose by 7%, and German unemployment data was worse than expected, causing LME nickel prices to inch down. Despite the news reported from EU summit that EUR 120 billion of bailout funds will be released boosted the market briefly, the positive news dwindling as many European countries were doubtful about the plan, pushing down LME nickel prices to close at USD 16,220/mt, down USD 63/mt.
LME base metal prices overnight inched down, and the US dollar index was supported by risk adverse assets buyers, but declines of metal prices were limited due to positive news released from the EU summit. Positive news that Spanish and Italian government debt will be bought in the primary market through EFSF and ESM was released, with Merkel having hinted the likelihood of such move. Besides, the economic stimulus plan of EUR 120 billion was decided at the EU summit. But Italy issued 5-year and 10-year government bonds on Thursday, with the yields rose significantly, overshadowing the market. In this context, SHFE base metals should fall slightly today.
LME nickel prices should move between USD 16,000-16,500/mt today, and domestic spot nickel prices should move fall to RMB 118,000-121,700/mt.