SHANGHAI, Jul. 4 (SMM) – LME nickel prices overnight opened at USD 16,706/mt, with the high end USD 17,390/mt, finding support at USD 16,706/mt. Finally, LME nickel prices closed at USD 17,220/mt, up USD 490/mt. Trading volumes increased by 2,747 lots to 4,701 lots, and total position was 108,273 lots, down 1,736 lots. LME nickel inventories were 103,860 mt, up 510 mt.
As the market was expecting euro zone will lower interest rates and England will expand government bonds purchasing plan, base metal prices and stocks rose significantly. LME nickel prices broke through USD 17,000/mt level and touched USD 17,390/mt, up USD 490/mt.
LME base metal prices overnight closed with gains. Eurozone inflation continued to fall, with increasing likelihood of european central bank lowering interest rates. Mainstream opinion is that european central bank will lower interest rates by 25 basis points.
LME nickel prices should move between USD 16,000-17,400/mt today, and domestic spot nickel prices should rise to RMB 121,000-124,500/mt.