SHANGHAI, Apr. 26 (SMM) – LME nickel price overnight opened at USD 15,299/mt, with the high end of the price range USD 15,568/mt, and finding support at USD 15,182/mt. Finally, LME nickel prices closed at USD 15,450/mt, up USD 200/mt from the previous trading day. Trading volumes increased by 1,189 lots, to 4,264 lots, and total positions increased by 964 lots, to 119,321 lots. Inventories fell by 96 mt, to 175,764 mt.
LME nickel prices overnight opened at USD 15,300/mt. As SHFE base metals prices rose during Asian trading hours, LME nickel prices also edged up, touching USD 15,390/mt. UK GDP overnight was much higher than expectations, boosting market sentiment, with LME nickel prices maintaining upward momentum and finally closing at USD 15,450/mt.
Positive economic data from the US and UK overnight helped boost market sentiment. The preliminary UK 1Q GDP was 0.6%, well better than market expectations of 0.3%. After its earlier credit rating cuts by the Moody and Fitch Ratings, the UK released positive economic results, helping ease market concerns over economic growth, and sending the pound up significantly against the dollar. In the US, its latest initial jobless claims hit the lowest since the week ending March 9, down 16,000 from the previous data, also support equity market.
After Portugal introduced economic stimulus measures, Italian’s new prime minister called for an easing of the austerity policies. Outlining a program of institutional reforms and measures to create employment, the new government has sent a strong message that a change of direction was needed. This has strengthened market expectations over easing measures in the Europe. Goldman Sachs said the European Central Bank may cut its refinancing rate by 25 basis rates in interest rate meeting in May.
In China, the Political Bureau of the Central Committee said yesterday that more efforts will be made in domestic demand improvement, cancel and decentralization of administrative examination and approval, strict control over expansion of high energy consumption and high-pollution industries, promoting industry transformation and upgrading, and the adjustment of industrial overcapacity. Yuan Xilu, Deputy Director of Planning Division under National Development and Reform Commission (NDRC), said the urbanization development plan is expected to be launched in the first half of the year.
LME nickel prices will move between USD 15,250-15,650/mt today. Spot nickel prices in Shanghai are expected between RMB 107,000-109,000/mt.