SHANGHAI, Jul. 5 (SMM) – LME nickel prices overnight opened at USD 13,840/mt, with the high end of the price range USD 13,910/mt, and finding support at USD 13,740/mt. Finally, LME nickel prices closed at USD 13,817/mt, down USD 49/mt from the previous trading day. Trading volumes decreased by 789 lots, to 1,443 lots, and total positions increased by 139 lots, to 123,233 lots. Inventories fell by 78 mt, to 190,512 mt.
European Central Bank (ECB) and Bank of UK announced to maintain interest rates unchanged. ECB President Draghi said they will maintain interest rates at low levels in a long term and will likely further lower interest rates, and economy still faces downturn risk. The euro thus plunged by 0.7%, pushing the US dollar index to a high, but European stocks jumped 2.3%, with base metals prices weighed. Transactions were muted due to closure of US stocks and investors awaiting US non-farm employment data. With ongoing Greece’s and Portugal’s bailout problem, the US dollar index strengthened to 83.920 after interest rates announcement by the ECB and BOK, weighing down LME nickel prices to close at USD 13,817/mt.
LME nickel prices will hover between USD 13,700-13,900/mt today, and spot nickel prices in Shanghai are expected to move between RMB 96,300-97,300/mt.