SHANGHAI, Jul. 2 (SMM) – LME nickel prices overnight opened at USD 13,750/mt, with the high end of the price range USD 14,048/mt, and finding support at USD 13,700/mt. Finally, LME nickel prices closed at USD 13,980/mt, up USD 243/mt from the previous trading day. Trading volumes increased by 197 lots, to 3631 lots, and total positions decreased by 1,112 lots, to 125,066 lots. Inventories grew by 228 mt, to 187,716 mt.
China's official June PMI fell from 50.8, to 50.1, but was still above 50. Besides, China's central bank took measures to eased interbank capital crunch, so the Shanghai Composite Index closed the day with gains at 1,995. The US dollar index closed down at 83.005, supporting base metals prices to rebound. Positive economic data from Europe and US helped ease market concerns over demand. Declines of euro zone manufacturing activities were the slowest in 16 months. US ISM announced US June manufacturing index was 50.9, higher than the expected 50, enhancing market expectations that US economy will continue to recover.
LME nickel prices opened at USD 14,000/mt today, and will hover between USD 13,800-14,100/mt today, and spot nickel prices in Shanghai are expected to move between RMB 97,500-98,500/mt.