SHANGHAI, Oct. 29 (SMM) – LME nickel prices overnight opened at USD 14,550/mt, with the high end of the price range USD 14,686/mt, and finding support at USD 14,510/mt. Finally, LME nickel prices closed at USD 14,552/mt, up USD 19/mt from the previous trading day. Trading volumes decreased by 980 lots, to 2,152 lots, and total positions increased by 526 lots, to 139,351 lots. Inventories fell by 294 mt, to 234,984 mt.
LME nickel prices last Friday opened at USD 14,695/mt, inching down to an intraday low of RMB 14,450/mt. University of Michigan’s October CCI released last Friday was 73.2, falling short of both expectations and September’s, with the market taking a pessimistic outlook for US economy and causing expectations that the Fed will maintain QE3 in place this year to grow. LME nickel prices gained back some losses and closed the day down USD 156/mt at USD 14,533/mt. US fiscal impasse has dragged down US economic recovery, with the US dollar index falling to a low 78.91. The market believes the US Federal Reserve will unlikely announce QE3 wind-down at its policy meeting to be held this week, lending some support to LME nickel prices. But month-end cash flow tightness will refrain LME nickel prices from rising. LME nickel prices overnight opened at USD 14,550/mt, with the high end of the price range USD 14,686/mt, and closing at USD 14,552/mt.
LME nickel prices will move between USD 14,500-14,600/mt today, and nickel prices in Shanghai will move between RMB 99,300-100,200/mt.