Margins at China’s scale efficient industrial dropped 8% in December, causing the A-share market to plunge, and closing out the day with declines. The RMB exchange rate slipped further. However, the euro surged around 4:00 PM, weighing down the US dollar index and driving up base metals prices. US December durable goods orders were down 3.4% MoM, falling short of market expectations. This caused US stocks to plummet and the US dollar index to slump.

LME nickel prices opened at USD 14,690/mt, then fluctuated between USD 14,550-14,660/mt during Asian trading hours. During European trading hours, LME nickel prices surged to touch as high as USD 14,825/mt. But during US session, LME nickel prices tumbled, then rallied as the US dollar index slumped, and closed at USD 14,765/mt, up 0.14%. Trading volumes decreased 342 to 4,391 lots, and total positions increased 314 to 209,834. LME nickel inventories fell 234 to 424,110 mt.

LME nickel prices are expected to fall today. Spot nickel prices in Shanghai will move between RMB 106,200-107,700/mt.