SHANGHAI, Apr. 12 (SMM) – LME nickel price overnight opened at USD 16,100/mt, with the high end of the price range USD 16,260/mt, and finding support at USD 16,030/mt. Finally, LME nickel prices closed at USD 16,220/mt, up USD 106/mt. Trading volumes increased by 419 lots, to 2,741 lots, and total positions increased by 1,271 lots, to 119,896 lots. Inventories fell by down mt, to 168,378 mt.
LME nickel prices opened at USD 16,100/mt, and inched up to USD 16,200/mt during Asian trading hours, but rolled back early gains at the end of the trading. The number of US initial jobless claims last week decreased by 42,000, to 346,000, lower than the 360,000 expected, giving a signal that US job market will improve mildly. The US dollar index fell to test 82, and LME nickel prices gained ground again and finally closed at USD 16,220/mt, up USD 106/mt.
News from China overnight was mixed, and significantly affected the market. China's newly-increased RMB loans in March were RMB 1.06 trillion, higher than the RMB 0.85 trillion expected; M2 increased by 15.6% YoY, compared to the 14.6% growth expected, and M1 and M0 also reported sharp growth; forex receipts maintained a high level over a year. Domestic currency supply is sufficient since domestic economic stimulus policies and RMB appreciation prompt international capital to flow into China, and this boosted global capital market. The Shanghai Composite Index and Shanghai metals prices advanced initially but then rolled back early gains due to expectations of IPO resumption. The Xinhua News Agency released five articles during April 9-11 in favor of IPO resumption, and supervision institutions and the market cannot step aside the problem, with another IPO expected to be commenced soon.
As the number of US initial jobless claims last week decreased by 42,000, to 346,000, which hit a record low last seen in November 2012, the Standard & Poor's 500 Index and Dow Jones Industrial Average rose to new highs. Italy successfully auctioned three categories of government bonds totaling EUR 7.169 billion, meaning investor concerns over Italy's political situations eased, and the euro against the US dollar thus broke through 1.31.
The US dollar index fell by 0.2, to 82.27; European and US stocks generally advanced; LME base metals prices were mixed, but edged up from Asian trading hours.
Euro zone industry production data and US retail sales figure will be released today. Before the announcement, LME nickel prices will move between USD 16,000-16,400/mt today. Spot nickel prices in Shanghai are expected between RMB 112,500-114,500/mt.