SHANGHAI, Apr. 24 (SMM) – LME nickel prices opened at USD 18,305/mt overnight, with the high end of the price range USD 18,525/mt, and finding support at USD 18,000/mt. Finally, LME nickel prices closed at USD 17,429/mt, down USD 911/mt from the previous trading day. Trading volumes increased by 1,978 lots, to 7,046 lots, and total positions decreased by 809 lots to 233,922 lots. Inventories fell by 828 mt, to 276,888 mt.
The Shanghai Composite Index was sluggish yesterday, while the Shenzhen Component Index closed the day with gains. HSBC's April PMI for China rebounded, but the announcement of IPO weighed on the market. The PBOC raised RMB guide price, but RMB exchange rate dropped below 6.24 to hit a 16-month low after the release of HSBC's April PMI for China. April PMI snapped a five-month losing streak, but was below 50. New order index rose after hitting a 19-month low in March, showing China's manufacturing is still contracting, which depressed market sentiment. LME nickel prices opened at USD 18,305/mt, rising to a new high of USD 18,525/mt, but then were pushed down due to selloffs of LME three-month zinc contracts, and closing at USD 18,429/mt.
US March durable goods orders and the number of initial jobless claims last week will be released today. LME nickel prices are expected to fluctuate between USD 18,400-18,600/mt, and spot nickel prices in Shanghai will be between RMB 127,000-128,000/mt.