SHANGHAI, Jul. 12 (SMM) – LME nickel prices overnight opened at USD 16,072/mt, with the high end USD 16,290/mt, finding support at USD 16,050/mt. Finally, LME nickel prices closed at USD 16,165/mt, up USD 88/mt. Trading volumes increased by 529 lots to 3,114 lots, and total position was 110,206 lots, up 973 lots. LME nickel inventories were 105,528 mt, up 522 mt.
German's CPI released yesterday was in line with market expectations, and slowly falling CPI did not allow German to expand easing policies. LME nickel prices fell slightly to test USD 16,000/mt level. The market was still as the US Federal Reserve did not reported QE3 implementation, and with dip-buying, LME nickel prices rebounded slightly and closed at USD 16,165/mt, up USD 88/mt.
LME base metals prices overnight rose slightly as risk appetite grew since Spain released its budget for the following two years totaling EUR 65 billion. The US Federal Reserve announced the minute for June, showing many FOM Committee members believe further stimulus policies should be took by the Fed. But most Fed officials think current policies are favorable, causing expectations of more easing policies by the Fed to decrease and keeping the US dollar index firm.
LME nickel prices should move between USD 16,000-16,500/mt today, and domestic spot nickel prices should move between RMB 117,300-120,500/mt.