SHANGHAI, Jul. 20 (SMM) – LME nickel prices overnight opened at USD 16,062/mt, with the high end USD 16,310/mt, finding support at USD 16,062/mt. Finally, LME nickel prices closed at USD 16,135/mt, up USD 58/mt. Trading volumes increased by 878 lots to 2,621 lots, and total position was 106,496 lots, up 303 lots. LME nickel inventories were 111,174 mt, up 1,848 mt.
The number of US jobless claims and second-hand home sales during June fell to the lowest in 8 months, causing expectations that US will release additional easing policies to improve and pushing down the US dollar index. Meanwhile, Germany passed the bailout plan to Spanish banking sector, helping ease concerns over European debt crisis. As a result, LME nickel prices rose and finally closed at USD 16,135/mt, up USD 58/mt.
Germany passed the bailout funds ceiling EUR 100 billion to Spanish banking sector in a vote by 473 to 97. But German Chancellor and finance minister said Spain should maintain credit tightening policies and pay the debt. Besides, Spanish 10-year government bond yields rose to nearly 7%, pushing Spain to release tightening policies and boosting inventors' confidence and the euro. The number of US jobless claims for the week ending July 14th increased by 34,000, to 386,000, higher than expected. The number of US home sales was down 5.4%, to 4.37 million, the lowest in 8 months, and lower than the 4.62 million expected. Market speculations over QE3 implementation grew due to sluggish US economic data, pushing down the US dollar index.
LME nickel prices should move between USD 16,000-16,500/mt today, and domestic spot nickel prices should move between RMB 116,500-119,000/mt.