SHANGHAI, Jul. 23 (SMM) – LME nickel prices overnight opened at USD 14,209/mt, with the high end of the price range USD 14,320/mt, and finding support at USD 14,066/mt. Finally, LME nickel prices closed at USD 14,125/mt, down USD 55/mt from the previous trading day. Trading volumes increased by 11 lots, to 3,442 lots, and total positions increased by 94 lots, to 123,847 lots. Inventories grew by 3,720 mt, to 199,782 mt.

LME copper, aluminum, lead and zinc closed with gains, while LME nickel prices rolled back early gains, closing the day down 0.39%. LME nickel prices fluctuated between USD 14,200-14,300/mt during Asian trading hours, once touching USD 14,320/mt, falling to USD 14,066/mt and finally closing at USD 14,125/mt. China decided to eliminate restrictions of loan interest rates at financial institutions, which will release liquidity to the market and is favorable for Chinese economy. US economic data released overnight (June Chicago Fed National Activity Index and existing home sales in June) unexpectedly fell short of expectations, and the US dollar index continued to weaken to 82.1, which supported base metals prices.

In Shanghai, transactions improved due to rebounding LME nickel prices. LME nickel prices touched USD 14,285/mt immediately following opening, and Jinchuan raised ex-works prices by RMB 1,000/mt, to RMB 99,500/mt, with #1 nickel prices between RMB 98,600-99,700/mt. Spot prices rose further in the afternoon, with Jinchuan nickel prices between RMB 99,700-99,900/mt and Russian nickel prices between RMB 98,700-98,900/mt. But as LME nickel prices fell from USD 14,320/mt, to USD 14,185/mt, transactions muted, and were mainly made among traders.

LME nickel prices will fluctuate between USD 13,900-14,200/mt today, and spot nickel prices in Shanghai are expected to move between RMB 98,300-99,400/mt.