SHANGHAI, Oct. 30 (SMM) – LME nickel prices overnight opened at USD 15,620/mt, standing at the 5 and 10-day moving average, and extended gains during Asian trading hours. But prices dropped rapidly later on due to selling, dipping to as low as USD 15,425/mt. The Fed announced to draw QE3 to a close, pushing down base metals prices. LME nickel prices closed at USD 15,640/mt, up 0.19%. Trading volumes decreased 833 to 4,982 lots, and total positions were up 2,106 to 211,500 lots. LME nickel inventories grew 2,082 to 380,900 mt. a large number of NPI producers suspended production due to severe losses, and the monsoon in the Philippines allowed goods shipments to decrease. This inspired investors to believe LME nickel prices will rise to USD 15,000/mt but meet resistance at USD 15,600-15,900/mt.
LME nickel prices will meet resistance at USD 15,800-15,900/mt, and spot nickel prices in Shanghai will move between RMB 104,800-106,800/mt.