SHANGHAI, Oct. 18 (SMM) -- LME nickel LME nickel for delivery in three months opened at USD 16,975/mt and settled at USD 17,140/mt overnight, up by USD 264/mt from a day earlier, with the intraday high at USD 17,140 mt and the low at USD 16,805/mt. Daily trading volumes were 2,870 lots, down 1,347 lots. Positions were 113,879 lots, down 1,347 lots. LME nickel inventories were 127,956 mt, down 588 mt.
The eurozone reported progress over the Greece debt crisis. According to IMF officials, the reached consensus on most core issues with Greece. In addition, the US new home starts for September were better than market expectation, boosting the US equity market and LME nickel prices. Finally, LME nickel settled at USD 17,140/mt, up USD 264/mt from a day earlier.
LME base metal prices all closed with gains overnight amid improved risk appetite. In the euro zone, market sentiment eased after Moody’s kept credit rating of Spain unchanged. In the US, new home starts and permits for new buildings for September were positive, suggesting that the US housing market recovery is heading better direction. In China, China’s premier Wen Jiabao said the Q3 economic condition was relatively positive, fueling market expectation that GDP for Q3 to be announced on Thursday will be positive. China’s will announce retail sales and GDP for September. If the data improves, base metal prices will be further supported. Meanwhile, the EU summit will also be held on Thursday.
SMM expects that LME nickel prices will move in the USD 17,100-17,600/mt range, and spot nickel prices will hold between RMB 123,500-126,500/mt on Thursday.