SHANGHAI, Jul. 23 (SMM) – LME nickel prices overnight opened at USD 16,158/mt, with the high end USD 16,158/mt, finding support at USD 15,883/mt. Finally, LME nickel prices closed at USD 15,920/mt, down USD 215/mt. Trading volumes decreased by 509 lots to 2,112 lots, and total position was 107,071 lots, up 575 lots. LME nickel inventories were 110,658 mt, down 516 mt.
European bond market deteriorated last Friday. Germany post negative government bond yields, while Spanish 10-year government bond yields hit a record high for the year at 7.18%. Growing risk aversion sentiment pushed down LME nickel prices. LME nickel prices closed at USD 15,920/mt last Friday, down USD 215/mt.
LME base metals market plummeted last Friday, with LME three-month copper contract prices down 2%. Valencia asked for bailout from Spanish government, and Spanish 5-year and 10-year government bond yields surged to record highs since the issuance of the euro, triggering concerns that euro zone will need international help. Spanish government downgraded its estimate of economic growth for this and next year, also weighing down the euro. As risk aversion sentiment grew, the US dollar index stood at 83.00 level.
LME nickel prices should move between USD 15,750-16,200/mt today, and domestic spot nickel prices should move between RMB 115,000-118,500/mt.