[Ni] SMM Morning Review - 2009/10/20 Nickel Market

SHANGHAI, Oct. 20 (SMM) -- LME nickel prices opened at USD 18,650/mt, later hit the daily high of USD 19,350/mt, and closed at USD 19,269/mt finally, with a daily growth rate of 3.04%.

    Both gold and crude oil have drawn more attention from investors since last week, and investors adopted a wait-and-see attitude towards the investment in base metals, resulting in weak fluctuations in base metal prices. Yesterday, crude oil prices hit a new high of USD 80.05/brarrel, while the US dollar index dropped to a new low of 75.19, which help draw more attention from investors in base metals again.

    Crude oil prices have set a new high, and are expected to face limited downward pressure in the short term in an effort to stabilize at USD 80/barrel, and particular attention should be paid to the negative impact from the reduction in crude oil prices on base metal prices. However, base metal prices will maintain the upward momentum in the long run, so LME nickel prices will move in the USD 18,800-19,600/mt range today.

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