SHANGHAI, Apr. 9 (SMM) – LME nickel price overnight opened at USD 15,975/mt, with the high end of the price range USD 16,281/mt, and finding support at USD 15,975/mt. Finally, LME nickel prices closed at USD 16,137/mt, up USD 97/mt. Trading volumes decreased by 43 lots, to 2,361 lots, and total positions decreased by 969 lots, to 115,926 lots. Inventories grew by 582 mt, to 166,866 mt.
LME nickel prices opened at USD 15,975/mt, and once struggled at USD 16,000/mt level after opening. But since large numbers of shorts left the market with profit-taking, LME nickel prices rallied during Asian trading hours, and once touched USD 16,281/mt. Due to strong short momentum, LME nickel prices met resistance and finally closed at USD 16,137/mt, up USD 97/mt.
The poor US employment data overnight give limited effects on the market. Euro zone April Sentix investor confidence index was -17.3, which was below expectations, but Germany's February industrial production rose from 0 in the previous month, to 0.5%. The euro against the US dollar has been rising for the fourth straight trading day and broke through 1.30, and Chilean state miner Codelco's unionized workers conducting a work stoppage on Monday increased expectations of copper supply shortfalls in the near term, so financial and commodity markets soared across the board.
In China, the Shanghai Composite Index plummeted due to the bird flu effects and tightening regulations to accumulation fund loans. Besides, the direct exchange between AUD and RMB will start on April 10th, so that AUD can be exchanged directly with RMB aside from the US dollar and JPY. That will help reduce losses of Chinese enterprises importing Australian ore.
The US dollar index rose by 0.1, to 82.65; European and US stocks and LME base metal prices advanced across the board.
LME nickel prices will move between USD 16,000-16,400/mt today. Spot nickel prices are expected between RMB 112,000-113,500/mt.