SHANGHAI, Jul. 30 (SMM) – LME nickel prices overnight opened at USD 13,850/mt, with the high end of the price range USD 13,900/mt, and finding support at USD 13,693/mt. Finally, LME nickel prices closed at USD 13,716/mt, down USD 127/mt from the previous trading day. Trading volumes decreased by 817 lots, to 2,059 lots, and total positions increased by 259 lots, to 122,131 lots. Inventories grew by 702 mt, to 200,280 mt.

LME base metals prices closed with gains except for nickel. LME nickel prices lacked ability to rise this week. Chinese government announced to audit local debt, triggering concerns over local debt problems. The Shanghai Composite Index closed at 1,976, and base metals prices dropped across the board. As US GDP growth in 2Q expected is only 0.9%, hopes that the US Federal Reserve will maintain easing policies strengthened, which allowed base metals to close with gains.

In Shanghai, #1 nickel prices were between RMB 97100-98200/mt in the morning, as LME nickel prices dropped, Jinchuan nickel prices were around RMB 98,000/mt, and Russian nickel prices were around RMB 97,000/mt. Transactions were muted due to the lack of directions and depressed market sentiment.

LME nickel prices will fluctuate between USD 13,700-13,900/mt today, and spot nickel prices in Shanghai are expected to move between RMB 96,600-97,700/mt.