SHANGHAI, Jun. 19 (SMM) – LME nickel prices opened at USD 19,180/mt overnight, with the high end of the price range USD 19,275/mt, and finding support at USD 18,530/mt. Finally, LME nickel prices closed at USD 18,607/mt, down USD 617/mt from the previous trading day. Trading volumes decreased by 475 lots, to 5,325 lots and total positions decreased by 9,845 lots to 219,932 lots. LME nickel inventories were up 19,242 mt to 305,970 mt.
The US Federal Reserve (Fed) decided to maintain easy monetary policy, pushing down the US dollar index and giving support to base metals prices. But LME nickel inventories surged 19,242 mt, weighing down LME nickel prices again. The growth in stocks may be a result of delivery for LME 1406 zinc contracts or China’s probe into financing fraud at the Port of Qingdao, which caused China’s goods to flow to LME warehouses.
The number of US initial jobless claims last week will be released today, and the plunging US dollar index will boost metals prices. LME nickel prices are expected to move between USD 18,500-18,850/mt today, and spot nickel prices in Shanghai will hover between RMB 127,800-129,500/mt.