SHANGHAI, Oct. 10 (SMM) – LME nickel for delivery in three months opened at USD 18,076/mt and closed at USD 17,959/mt, down USD 114/mt from a day earlier, with the intraday high at USD 18,275/mt and the low at USD 17,861/mt. Daily trading volumes were 2,690 lots, down 290 lots. Positions were 110,620, down 477 lots. LME nickel inventories were 124,248 mt, down 264 mt.
LME nickel prices were weighed down and fell below USD 18,000/mt on the US dollar index increase and Shagnghai Composite Index decline. During the late trading hours, no positive news was reported from the euro zone financial ministers’ meeting. Finally, LME nickel prices closed at USD 18,073/mt, down USD 249/mt from a day earlier.
LME base metal prices slightly fell overnight due to increased concern over market outlook. The IMF forecasted at a report that the euro zone economy growth will shrink by 0.4% in 2012 and will contract by 0.3% in July, and cut economic growth forecast for 2013 from 0.7% to 0.2%. The ECB president Mario Draghi said that there is still a long road before the euro zone economic outlook turns positive. He then added that there were no alternatives for budget cut plan. Investors concerned that the base metal performance will be negatively affected by global economic weakness. In response, they exited from risk assets market and turned to the US dollar as a safe haven. It is expected that uncertainties over the European debt crisis will cloud base metal price outlook.
SMM expects that LME nickel prices will move in the USD 17,700-18,200/mt and spot nickel prices will move in the RMB 128,700-130,500/mt range on Wednesday.