Nickel yesterday traded with the negative node and settled -0.44% down at 945.60 tracking LME nickel prices last Friday opened at USD 17,145/mt, with the high end USD 17,293/mt, finding support at USD 16,915/mt. Finally, LME nickel prices closed at USD 17,026/mt, down USD 59/mt. LME nickel prices opened at USD 17,200/mt. Spanish 10-year government bond yields rose to 6.7%, and Italian 10-year government bond yields rose to 6.18%, pushing down LME nickel prices. Positive industrial data in Europe once boosted LME nickel prices, but as Moody's downgraded Spain's rating, market confidence weakened. Finally, LME nickel prices closed at USD 19,026/mt, down USD 59/mt. LME base metals prices overnight closed with declines. Moody's downgraded government bond rating of Cyprus from BA1, to BA3, and included it in the watch list, and downgraded the rating of Spain from A3, to BAA3, and also included the country in the watch list of further downgrade. In the meantime, Germany Chancellor Merkel denied the feasibility of eurozone joint bond. He said Germany will not agree on any proposal which will lead to exacerbating crisis. For today's session market is looking to take support at 936.3, a break below could see a test of 927.0 and where as resistance is now likely to be seen at 958.1, a move above could see prices testing 970.6.
Nickel trading range for the day is 927.07-971.
Nickel dropped after Spanish 10-year government bond yields rose to 6.7%
Positive industrial data in Europe once boosted nickel prices, but as Moody's downgraded Spain's rating weakened confidence.
China's nickel ore imports are expected to have hit a record high in May after a rush to purchase laterite ore