SHANGHAI, Jun. 5 (SMM) – LME nickel prices overnight opened at USD 15,185/mt, with the high end of the price range USD 15,328/mt, and finding support at USD 15,100/mt. Finally, LME nickel prices closed at USD 15,241/mt, up USD 90/mt from the previous trading day. Trading volumes decreased by 2,198 lots, to 3,048 lots, and total positions increased by 307 lots, to 114,612 lots. Inventories grew 360 mt, to 180,432 mt.
LME nickel prices overnight opened at USD 15,185/mt, and later fell but found strong support at the 30-day moving average, soaring after hovering around USD 15,150/mt. US trade deficit expanded but was better than forecasts, with seasonally adjusted export value up 1.2%, to USD 187.4 billion in April, and import value up 2.4%, to USD 227.7 billion. As the US dollar index rose slightly, LME nickel prices shed some gains and finally closed at USD 15,234/mt, up USD 90/mt.
The market lacked macroeconomic news overnight, with the market continuing to absorb supports to base metals from decreasing copper ore supply from Indonesian Grasberg copper mine. US trade deficit expanded to USD 40.3 billion but was better than forecasts. Kansas Fed Chairman George appealed the US Federal Reserve wind down assets purchasing, and pointed out that debit balances in security margin accounts at broker-dealers hit a record high in April, increasing expectations that the Fed will contract assets purchasing plan. Some capital flowed out of the US stock markets, weighing down base metal prices.
Eurozone April PPI dropped for two consecutive months by 0.6%, and the largest decline since July 2009, with the annual rate down for the first time since February 2010 by 0.2%. Data shows euro zone CPI will likely continue to rise in the next few months so that European central bank may further loosen its monetary policy.
Shinzo Abe appeals investments from Japanese endowment insurance funds in the stock market should be increased, boosting the Nikkei Index to soar by 2.05%. Japanese Prime Minister Shinzo Abe will announce government economic strategy today.
National Energy Administration Electric Power Department Deputy Director Hao Weiping reported China's power consumption in May was 405.1 billion KWH, up 4.8% YoY, with the growth higher than the previous month but still a low in recent years, indicating China's economic recovery is still modest.
The US dollar index fluctuated below 83, up 0.12%; US stocks markets mostly fell, with the euro against the US dollar up 0.03%; Asian stocks markets were mixed. LME base metals prices closed with gains except for tin.
US will release its ADP job data, and the market will remain cautious ahead of the data, restraining metal price increases. Shanghai base metals prices are expected to open high but move lower today.
LME nickel prices will move between USD 15,100-15,500/mt today, and spot nickel prices in Shanghai are expected to be between RMB 105,500-107,500/mt.