SHANGHAI, May 20(SMM) – European Central Bank announced it will accelerate Quantitative Easing, pushing down the EUR:USD. European bond yields fell sharply, with German Bunds down 10%. The US dollar index gained ground, weighing down base metals prices. US housing starts in April rebounded to a 7-year high, sending the US dollar index up further. LME nickel prices opened at USD 13,725/mt Tuesday, then dropped to move between the 5 and 20-day moving average. During European and US trading session, LME nickel prices plunged as the US dollar index surged, dipping to as low as USD 12,915/mt, and closing at USD 12,950/mt, down 5.54%. Trading volumes increased 4,675 lots to 8,638 lots, and total positions fell 1,874 to 228,619. LME nickel inventories were up 1,314 mt to 444,936 mt.
LME nickel prices should fall further today. SHFE 1507 nickel contract prices declined RMB 4,090/mt Tuesday evening. Spot nickel prices in Shanghai will move between RMB 94,000-99,000/mt today.