SHANGHAI, Oct.17 (SMM) -- LME nickel for delivery in three months opened at USD 17,127/mt and closed at USD 16,876/mt overnight, down USD 276/mt from a day earlier, with the intraday high at USD 17,275 mt and the lowest price at USD 16,821/mt. Daily trading volumes were 3,399 lots, down 1,022 lots. Positions were 115,224 lots, up 1,724 lots. LME nickel inventories were 128,544 mt, up 2,205 mt.
Lacking of solid news during the morning Asian trading hours, LME nickel prices fluctuated weakly. During the afternoon Asian trading hours, LME nickel prices briefly advanced to hit a high at USD 17,275/mt, due to Asian stock rise, but fell later. Finally, LME nickel prices closed at USD 16,876/mt, down USD 276/mt.
LME base metal prices largely closed with gains overnight, as market sentiment was boosted on possible Spanish bailout hope. The Spanish government is preparing to ask for financial aid from the ECB. Although market has low expectation over the EU summit to be held on Thursday and Friday, any progress of the Spanish debt crisis is still possible. Meanwhile, Germany officials also expressed stronger willingness to help Greece. In addition, according to data from ZEW, Germany's economic sentiment for September rebounded the second consecutive month, better than market expectation, despite that the index was still not optimistic. Generally speaking, possibility for Spain to ask for financial aid is high and the Greece may likely to receive bailout as well, which greatly boosted risk appetite.
SMM expects LME nickel prices will move in the USD 16,600-17,100/mt range, and spot nickel will hold between RMB 123,500-126,000/mt on Wednesday.