SHANGHAI, Jul. 13 (SMM) – LME nickel prices overnight opened at USD 16,120/mt, with the high end USD 16,179/mt, finding support at USD 15,770/mt. Finally, LME nickel prices closed at USD 15,890/mt, down USD 275/mt. Trading volumes increased by 1,249 lots to 4,363 lots, and total position was 111,924 lots, up 1,718 lots. LME nickel inventories were 105,912 mt, up 384 mt.
The number of US jobless claims hit a 4-year low, so the US dollar index climbed to a record high at 83.829, pushing down LME nickel prices below USD 16,000/mt. Finally, LME nickel prices stabilized and closed at USD 15,980/mt, down USD 275/mt.
LME base metals prices overnight fluctuated narrowly. The market expects China's economic growth during April through June will likely slide to a record low last seen in 1Q 2009. Metals should be weigh down if China's GDP continues to weaken significantly. Moody's announced it will downgrade Italy's rating from A3, to Baa2, and maintain the outlook negative. Moody's said Italy's rating was downgraded owning to Spanish and Greek crisis. Shanghai metals should remain weak today.
LME nickel prices should move between USD 15,700-16,400/mt today, and domestic spot nickel prices should move between RMB 116,000-119,500/mt.