SHANGHAI, Jan.15 (SMM) -- LME nickel for delivery in three months opened at USD 17,565/mt and closed at USD 17,335/mt on Monday down USD 226/mt from a day earlier, with the intraday high at USD 17,653 mt and the lowest price at USD 17,260/mt. Daily trading volumes were 2,724 lots, up 214 lots. Positions were 113,119 lots, down 915 lots. LME nickel inventories increased by 2,814 mt.
During the Asian trading hours, China's stock market rallied yb 3% to hit 2300 points. The stock market hike pushed up LME nickel prices to hit USD 17,600/mt. However, during the European and US trading hours, LME nickel prices fell to close at USD 17,335/mt, down USD 226/mt from a day earlier.
The Fed Reserve Chairman Ben Bernoneke said the debt purchase plan will not result in high inflation and assets bubble, and it is not appropriate to hike interest rate yet. Meanwhile, the US President Obama said on Monday that market will become out of control if the debt upper limit is not hiked.
Despite economic growth in Germany, Italy and Spain still weighed on euro zone industrial output down in November. According to data from Eurostat, industrial output for November fell 0.3% MoM, lower than an increase by 0.2% expected, down 3.7% YoY.
LME nickel inventories surged to 2,500 mt, adding pressure for LME nickel prices to advance. SMM expects that LME nickel prices will move between USD 17,100-17,600/mt, and Shanghai nickel spot prices will move between RMB 121,500-124,000/mt in the following week.