SHANGHAI, Apr. 10 (SMM) – LME nickel price overnight opened at USD 16,145/mt, with the high end of the price range USD 16,275/mt, and finding support at USD 16,125/mt. Finally, LME nickel prices closed at USD 16,234/mt, up USD 97/mt. Trading volumes decreased by 151 lots, to 2,210 lots, and total positions increased by 1,647 lots, to 117,573 lots. Inventories fell by 78 mt, to 166,788 mt.
LME nickel prices extended their increases and once touched USD 16,275/mt, but then fell again. Due to a lack of positive news, nickel prices inched up due to growing demand, and finally closed at USD 16,234/mt, up USD 97/mt.
China's major economic data overnight and annual earnings reports from US enterprises boosted market confidence. China's March PPI was down 1.9%, and CPI rose by 2.1%, with the increase lower than the 2.5% expected, which is due mainly to falling pork and vegetable prices. Market expectations that Chinese government will tighten liquidities thus decreased significantly. Besides, Alcoa reported its annual earnings grew by 59%, increasing optimism towards US stocks, while US February wholesales data and inventories data improved. As a result, the Dow Jones Industrial Average hit a new high, while the US dollar index dropped, with commodities mostly closing the day with gains.
European major economic data was mixed. UK February industry output grew 1.0% MoM, but was down 2.2% YoY, driving the pound. Germany's import value February was EUR 71.9 billion, down 3.8% MoM, and export value was EUR 88.7 billion, down 1.5% MoM. The sluggish import and export data shows Germany's domestic demand continued to weaken, and exportation was too poor to support its GDP growth.
LME nickel prices will move between USD 16,100-16,400/mt today. Spot nickel prices in China are expected between RMB 113,500-115,500/mt.