SHANGHAI, Jul. 30 (SMM) – LME nickel prices last Friday opened at USD 15,980/mt, with the high end USD 16,075/mt, finding support at USD 15,830/mt. Finally, LME nickel prices closed at USD 15,990/mt, up USD 124/mt. Trading volumes decreased by 498 lots to 1,942 lots, and total position was 105,424 lots, down 59 lots. LME nickel inventories were 112,698 mt, up 462 mt. Transactions of Russian nickel were brisk in the morning session, with spot prices between RMB 114,400-116,300/mt. Boosted by LME nickel prices, spot nickel prices rose to RMB 114,700-116,700/mt, but with transactions muted.
LME base metals prices rose on speculations European central bank and euro zone governments will take action to curb European debt crisis. It was reported euro zone countries and European central bank plan to intervene the financial market to help lower loan costs of Spain and Italy. German Chancellor Angela Merkel and French President Hollande stated they will protect the euro zone as possible as they can. Besides, US Commerce Department announced US GDP during 2Q was 1.5%, compared to the 1% estimated, while the increase during 1Q was 2.0%. That indicated that both US consumer and government spending during 2Q fell, and US economic growth is in the face of downturn risk.
LME nickel prices should move between USD 15,800-16,200/mt today, and domestic spot nickel prices should move between RMB 114,400-117,000/mt.