SHANGHAI, Oct. 23 (SMM) -- LME nickel for delivery in three months opened at USD 16,875/mt and closed at USD 16,605/mt, down USD 325/mt from a day earlier, with the intraday high at USD 17,000/mt and the low at USD 16,584/mt, down USD 325/mt from a day earlier. Daily trading volumes were 3,893 lots, up 1,439 lots. Positions were 113,166 lots, down 921 lots. LME nickel inventories were 127,134 mt, down 366 mt.
Although LME nickel prices pared certain losses during Asian trading hours, weak momentum still remained amid bearish sentiment. During the European and the US trading hours, LME nickel prices fell along with equity market and hit a new low USD 16,584/mt last seen on September 14th.Finally, LME nickel prices closed at USD 16,605/mt, down USD 352/mt from a day earlier.
LME base metal prices large closed with losses overnight. Spain did not request financial support, which weigh on base metal prices. The US Federal Reserve will hold a two-day interest rate meeting. Given the adopted QE3 and the nearing of US president election, it is expected that no significant measures will be released from the Fed meeting. However, as the US economy has begun to recover since September, investors focus that whether there will be possible hints of adjustment of QE3 from the Fed meeting.
Since LME nickel prices are still on downward track, SMM expects LME nickel prices will move in the USD 16,400-16,900/mt range, and spot nickel prices will move between RMB 121,000-123,000/mt on Tuesday.