SHANGHAI, Oct.30 (SMM) -- LME nickel for delivery in three months opened at USD 16,050/mt and closed at USD 15,950/mt overnight, down USD 100/mt from a day earlier, with the intraday high at USD 16,125 mt and the lowest price at USD 15,758/mt. Daily trading volumes were 3,360 lots, down 491 lots. Positions were 113,061 lots, up 626 lots. LME nickel inventories were 128,934 mt, down 78 mt.

Lacking solid economic data, LME nickel prices lingered around USD 16,000/mt on Monday. During the European trading hours, yields of Germany’s one-year bond was -0.0095%, while yields of Italy and Spanish 10-year government bond rose by 7 percentage points, suggesting that risk aversion sentiment grew. In response, LME nickel prices fell to hit at low at USD 15,758/mt. During the evening trading hours, LME nickel prices lacked guidance was the US equity market was close from typhoon impact. Finally, LME nickel prices closed at USD 15,950/mt, down USD 100/mt from a day earlier.

LME base metal prices closed with losses across the board as persistent European debt crisis continued to dampen market sentiment. According to data released by INE on October 29th, annualized rate of Spanish retail sales for September fell by 11%. Market expected that a slew of important economic data to be released on Tuesday will be disappointing due to austerity plan, including public finance, GPI, and GDPI. What’s more, the previously-released employment data from Spain deteriorated. Investors’ concern over the European debt crisis did not ease, as its credit rating and high employment rating still dampened investors’ concern. Further more, Germany refused debt write-down and Spanish high unemployment rate will send the US dollar higher.  Finally, market lacked guidance as US equity market was closed from typhoon impact.

Therefore, SMM expects that LME nickel prices will continue fluctuation trend to move in the USD 15,700-16,200/mt range, and spot nickel prices will move in the RMB 115,300-116,800/mt range on Tuesday.