SHANGHAI, Oct. 10 (SMM) – LME nickel prices opened at USD 16,475/mt overnight, and hovered between USD 16,560-16,660/mt during Asian trading hours. As the Fed’s meeting minutes released yesterday hinted an earlier interest rate hike, the US dollar index fell below 85 at one point, boosting base metals prices. But as the outlook in the euro zone is not promising, the US dollar index hovered around 85. The number of US initial jobless claims last week decreased 1,000 to 287,000, close to the lowest during 2007-2009, and the weekly average over the past month was down 7,250 to 287,750, a record low over the past eight years. This allowed the US dollar index to jump to 85.6 again, weighing down base metals.
LME nickel prices touched as high as USD 16,843/mt, but lost some gains and closed up 1.05% at USD 16,600/mt. Trading volumes decreased 521 to 2,587 lots, and total positions increased 3,414 to 205,900 lots. LME nickel inventories grew 618 to 365,100 mt.
LME nickel prices are expected to fluctuate around USD 16,500/mt. Spot nickel prices in Shanghai will move between RMB 113,800-114,300/mt.