SHANGHAI, Oct. 16 (SMM) – LME nickel prices overnight opened lower at USD 16,350/mt, with transactions during Asian trading hours. China’s September CPI rose 1.6%, 0.4 percentage point lower than August’s; PPI was down 1.8% YoY, and the drop expanded 0.6 percentage point compared to August. Poor economic indicators from China fueled market anticipation that China may push stimulus measures, driving the Shanghai Composite Index to close the day up 0.6%. LME zinc prices thus touched as high as USD 16,490/mt. But LME zinc prices grew 1,824 mt to 374,900 mt. This allowed LME nickel prices to plunge and close at USD 15,725/mt, down 3.9%.
Trading volumes increased 2,005 to 5,137 lots, and total positions were down 9,37 to 208,300 lots.
LME nickel inventories grew 43% as of October 15. When combined with weakening economies worldwide, LME zinc prices should consolidate at low levels. Spot nickel prices in Shanghai will move between RMB 108,200-109,500/mt.