Nickel yesterday traded with the negative node and settled -2.37% down at 1000.6 tracking LME nickel which opened at $22,750/mt and closed at $22,148/mt overnight, down by $552/mt from a day earlier, with the highest price at $22,800/mt and the lowest price at $22,120/mt.
LME base metal prices ended with losses on Monday, from traders’ concern over waning demand and lack of clear guidance and weighed by S&P’s downgrade of Greek credit rating.
LME nickel prices slipped all the way after opening, and accelerated declines during the European to close at $22,148/mt after hitting a low of $22,120/mt, affected by downward adjustment of Greek credit rating. Poor demand outlook is the major reason behind steady decline of LME nickel prices.
A year-long strike at Vales’ Sudbury nickel mine and Voisey Bay factory has come to an end, as agreement between operators and labors. It is expected that Vale’s nickel output will grow by 56% in 2011. Overall sentiment was still pessimistic and LME nickel prices may slip further.
For today's session market is looking to take support at 991.8, a break below could see a test of 982.9 and where as resistance is now likely to be seen at 1016.7, a move above could see prices testing 1032.7.
