SHANGHAI, Jul. 25 (SMM) – LME nickel prices overnight opened at USD 14,115/mt, with the high end of the price range USD 14,362/mt, and finding support at USD 14,025/mt. Finally, LME nickel prices closed at USD 14,322/mt, up USD 192/mt from the previous trading day. Trading volumes increased by 855 lots, to 3,437 lots, and total positions decreased by 277 lots, to 123,463 lots. Inventories fell by 486 mt, to 199,848 mt.
LME nickel prices opened at USD 14,115/mt during Asian trading hours, and dipped to USD 14,025/mt as China's July PMI hit a new low in 11 months of 47.7. Euro zone PMI climbed to 50.4, and pushed down the US dollar index, and China's poor economic data is expected to result in stimulus policies. In this context, LME nickel prices climbed. US annualized new home sales in June was 49.7, better than the 48.2 expected, which enhanced speculations of an end to QE3 and boosted demand for base metals. But base metals prices were mixed, with LME nickel prices strengthening and touching USD 14,362/mt, finally closing at USD 14,322/mt.
In Shanghai, #1 nickel prices were between RMB 98,100-99,200/mt in the morning, and were still concentrated in the range due to the disappointing HSBC's July PMI for China. As LME nickel prices rose in the afternoon, traders began to hold onto their goods, with Jinchuan nickel prices around RMB 99,400/mt, and Russian nickel prices around RMB 98,200/mt. Transactions were more brisk in the afternoon despite mainly made among traders.
LME nickel prices will fluctuate between USD 14,000-14,400/mt today, and spot nickel prices in Shanghai are expected to move between RMB 99,200-100,400/mt.