SHANGHAI, Jul. 9 (SMM) – LME nickel prices overnight opened at USD 16,750/mt, with the high end USD 16,775/mt, finding support at USD 16,200/mt. Finally, LME nickel prices closed at USD 16,260/mt, down USD 475/mt. Trading volumes increased by 152 lots to 3,582 lots, and total position was 109,195 lots, up 1,476 lots. LME nickel inventories were 103,854 mt, up 276 mt.
Expectations of economy were pessimistic due to worse-than-expected US non-farm employment data, so the US dollar index rose significantly and pushed down base metals prices. Finally, LME nickel prices closed at USD 16,260/mt, down USD 475/mt.
Base metals were weighed down due to lower-than-expected US non-farm employment data. The number of US non-farm employment increased by 80,000 in June, compared to the 90,000 expected. The increases expected in May after revised were 79,000, with the preliminary increases expected 69,000; the revised increases expected in April were 68, 000, with the initial of 77,000. US employment rate in June was 8.2%, unchanged from May and in line with expectations. The number of US non-farm employment in June only increased slightly, a signal that US economic growth slowed. Risk appetite decreased due to worse-than-expected US non-farm employment, causing capital to flow to the US dollar for safe-haven, pushing down base metals prices.
LME nickel prices should move between USD 16,000-16,500/mt today, and domestic spot nickel prices should move between RMB 118,000-121,000/mt.