SHANGHAI, Jan. 4 (SMM) –LME nickel for delivery in three months opened at USD 17,616/mt and closed at USD 17,510/mt, down USD 176/mt from a day earlier, with intraday high at USD 17,880/mt and the low at USD 17,450/mt.Daily trading volumes were 2,366 lots, up 2,353 lots. Positions were 118,497 lots, down 2,662 lots. LME inventories were 139,908 mt, up 834 mt.
The two parities in the US finally reached an agreement on fiscal cliff negotiation during the New Year holiday, boosting LME nickel prices to hit a high at USD 17,880/mt. However, the Fed Reserve interest rate meeting minutes for November were not positive. Coupled with technical correction demand, LME nickel prices fell by USD 176/mt to close at USD 17,510/mt.
Although the two parties finally reached an agreement on fiscal cliff negotiation, the unclear fiscal policy trend will continue to pose challenges for economic growth. Therefore, optimistic sentiment will not be sustainable. Market focus will shift to non-farm employment data to be released tonight.
SMM believed that any room for LME nickel prices to advance will be limited. LME nickel prices may move between USD 17,300-17,800/mt and Shanghai nickel spot prices will move between RMB 118,500-121,000/mt on Friday.