SMM Nickel Market Morning Review (2013-7-29)

SHANGHAI, Jul. 29 (SMM) – LME nickel prices last Friday opened at USD 14,150/mt, with the high end of the price range USD 14,205/mt, and finding support at USD 13,820/mt. Finally, LME nickel prices closed at USD 13,843/mt, down USD 314/mt from the previous trading day. Trading volumes increased by 287 lots, to 2,876 lots, and total positions decreased by 777 lots, to 121,872 lots. Inventories fell by 432 mt, to 199,578 mt.

Base metals prices dropped across the board last Friday due to concerns over China's economy and since investment banks lowered their expectations of US economic growth, and since Morgan Stanley exited spot trading market. LME nickel prices fell back below USD 14,000/mt, its largest decline of 2.22% in two weeks, and finally closing at USD 13,843/mt.

In Shanghai, Jinchuan nickel prices were around USD 99,600/mt, and Russian nickel prices were around RMB 98,400/mt. Downstream buyers lacked interest to purchase, with transactions mainly made among traders. 
 
LME nickel prices opened at USD 14,152/mt, and will fluctuate between USD 14,100-14,400/mt today, and spot nickel prices in Shanghai are expected to move between RMB 97,800-98,900/mt.