SHANGHAI, Oct. 22 (SMM) -- LME nickel for delivery in three months opened at USD 17,301/mt and closed at USD 16,930/mt, down USD 401/mt from a day earlier, with the intraday high at USD 17,320/mt and the low at USD 16,900/mt, down USD 401/mt from a day earlier. Daily trading volumes were 2,454 lots, down 262 lots. Positions were 114,087 lots, up 367 lots. LME nickel inventories were 127,500 mt, up 348 mt.
Last Friday’s EU summit failed to introduce new stimulus, disappointing market players. In addition, earning reports from Microsoft, Mcdonald's, and General Electronics were also lower than market expectation. In this context, the US equity market recorded the largest decline in six months, which weighed LME nickel prices to close at USD 16,930/mt, down USD 401/mt from a day earlier.
LME base metal prices were largely closed with losses last Friday, with LME copper and aluminum prices slipping by over 2%, which was mainly due to disappointing result from the EU summit. The summit focused on the establishment of uniform mechanisms for the Eurozone including the proposed European banking union, but failed to come up with solutions to the ongoing Greek and Spanish debt crisis.
Market focus will shift to the Fed interest rate meeting result and the US GDP for Q3. It is expected that LME nickel prices will rise after last Friday’s sharp decline. SMM expects LME nickel prices will move in the USD 16,700-17,200/mt range, and spot nickel will hold between RMB 122,000-125,000/mt on Monday