SHANGHAI, Jul. 16 (SMM) – Fed Chairwomen Janet Yellen stated it may be rational to raise interest rate this year in the testimony before congress, pushing up the US dollar index and weighing down base metals.

LME nickel prices opened at USD 11,565/mt, and stood above the 10-day moving average. After the release of China’s economic indicators, LME nickel prices slumped, but surged USD 200/mt in the afternoon. During European and US trading session, LME nickel prices touched USD 11,875/mt, and closed at USD 11,460/mt, down 1.25%. Trading volumes increased 3,489 lots to 8,189 lots, and total positions grew 1,522 to 219,171. LME nickel inventories were up 474 mt to 453,480 mt.

LME nickel prices will fall slightly today. SHFE 1509 nickel contract prices declined RMB 770/mt last night, and should fall to RMB 83,500-85,500/mt today. Spot nickel prices in Shanghai will also inch down as Jinchuan sells actively.