SHANGHAI, Apr. 22 (SMM) – LME nickel price last Friday opened at USD 15,575/mt, with the high end of the price range USD 15,575/mt, and finding support at USD 15,176/mt. Finally, LME nickel prices closed at USD 15,177/mt, down USD 382/mt from the previous trading day. Trading volumes decreased by 522 lots, to 3,483 lots, and total positions decreased by 586 lots, to 117,579 lots. Inventories grew by 3,870 mt, to 172,296 mt.
LME nickel prices moved lower after opening during Asian trading hours last Friday, dipping to as low as USD 15,320/mt. But since domestic stocks markets closed the day up 2%, and as gold prices rebounded, with other commodities also rising, LME nickel prices rallied to USD 15,575/mt. During European and US trading hours, both Fitch and Moody’s downgraded UK credit rating, pushing down nickel prices sharply. Finally, LME nickel prices closed at USD 15,177/mt, down USD 382/mt.
The 2-day G20 Finance Minister meeting concluded on April 19, and the meeting, focusing on the European debt issues, reached a consensus that a tougher fiscal cut target will not be set for debt-ridden countries, briefly boosting European equities.
The uncertainties, however, remain in Europe. Followed the Moody’s move, Fitch Ratings became the second international agency to strip UK’s AAA credit rating, down to AA+. The downgrade was due mainly to the country’s gloomy economic outlook and existing fiscal tightening. The S&P may also join the line. The credit cut by rating agencies signaled market concerns over economic growth momentum in the UK. The UK GDP for 1Q to be released this week will give more market direction. The Italian Parliament finally reached consensus and decided to re-elect current President Giorgio Napolitano, but Pier Luigi Bersani, the centre-left leader, announced his imminent resignation after new president is chosen, showing the political turmoil in the country is far being resolved.
In neighbor markets, the US dollar index was up 0.17 to 82.75. The US and European equities markets advanced except German Stock Index Dax, and most LME metals closed lower, with an exception of lead.
LME nickel prices will move between USD 15,000-15,400/mt today. Spot nickel prices in Shanghai are expected between RMB 105,000-107,000/mt.