SHANGHAI, Oct.26 (SMM) -- LME nickel for delivery in three months opened at USD 16,400/mt and closed at USD 16,183/mt overnight, down USD 208/mt from a day earlier, with the intraday high at USD 16,400 mt and the lowest price at USD 16,561/mt. Daily trading volumes were 2,929 lots, up 777 lots. Positions were 112,771 lots, down 662 lots. LME nickel inventories were 128,718 mt, up 804 mt.

During the Asian trading hours, LME nickel prices rebounded to USD 16,500/mt as US dollar index fell slightly. However, during the evening trading hours, disappointing earnings report from Apple and Amazon weighed down LME nickel prices to close at USD 16,183/mt, down USD 208/mt from a day earlier.

LME base metal prices drifted lower overnight, as market sentiment was weighed down after credit rating agency cut credit rating of Eurozone countries. International rating agency Standard & Poor’s adjusted credit rating of many French banks, alleging that French financial system is unable to stand high risks. However, a few Party members in Greece were against international aid plan and labor market reform plan, which added uncertainties of the Greek debt issue. Although the UK’s initial GDP for Q3 recorded the largest increase since Q3 2007, market concern over the Eurozone debt issue remained unchanged. Base metal movement shall depend on development of the European debt crisis. Since uncertainties over Spanish and Greece financing remain, global base metal prices shall still be weighed.

The US will release GDP for Q3, and market sentiment may improve if the data strengthen. SMM expects LME nickel prices will move in the USD 16,000-16,500/mt range, and spot nickel will hold between RMB 117,000-119,000/mt on Friday.