SHANGHAI, Jul. 27 (SMM) – LME nickel prices overnight opened at USD 15,900/mt, with the high end USD 16,187/mt, finding support at USD 15,783/mt. Finally, LME nickel prices closed at USD 15,866/mt, down USD 97/mt. Trading volumes decreased by 834 lots to 2,440 lots, and total position was 105,483 lots, up 18 lots. LME nickel inventories were 112,236 mt, up 474 mt.
Spanish 10-year government bond yields fell but were still at the risk level, and euro zone failed to report any positive news, so LME nickel prices continued to fluctuate weakly. Mario Draghi’s statement supported the euro, and US durable goods orders were better than forecast, while Spanish 10-year government bond yields fell below 7%, pushing up LME nickel prices to USD 16,187/mt. But as large numbers of shorts entered the market at the end of trading, LME nickel prices fell slightly and finally closed at USD 15,866/mt, down USD 97/mt.
LME base metals prices fell from high levels. European central bank President Mario Draghi said they will protect the euro as possible as they can including curbing irrational government bond yields. His statement showed European central bank is prepared to intervene in the crisis in Italy and Spain. In this context, the US dollar index plunged, causing investors to enter the market and metals prices to rise. But prices rolled back previous gains due to the lack of additional positive news.
LME nickel prices should move between USD 15,700-16,100/mt today, and domestic spot nickel prices should move between RMB 113,000-115,600/mt.